At the midday break, Chinese stocks showed mixed performance with the Shanghai Composite rising 0.2% to 3,894.28 points, while the blue-chip CSI300 index fell 0.3%.
Technology stocks led the declines in mainland China, with the ChiNext Composite down 0.5% and the STAR50 index dropping 0.9%. The CSI AI Index and CSI Semiconductor Index also weakened by 1.2% and 0.7% respectively.
Defensive sectors, particularly banking, provided some support as investors sought stability amid global market uncertainties.
In Hong Kong, the Hang Seng Index rose 0.4% and the Hang Seng Tech Index added 0.2%, despite a 2.4% drop in the Hang Seng AI Index. Z.AI shares plunged 10.5% following a discounted share placement, and Minimax declined 5.6%.
Investors across Asia are closely monitoring global monetary policy developments, with key interest rate decisions from the U.S. Federal Reserve and the Bank of Japan expected later this week. Rising oil prices are adding to inflation concerns, complicating the monetary policy outlook.
Background
The weakness in AI-related stocks highlighted growing investor caution towards high-growth technology shares after their strong gains. Analysts at Guotai Haitong Securities noted that investors were becoming more cautious about taking risks as the global backdrop remained complex.
The combination of elevated oil prices, interest rate uncertainties, and weaker sentiment towards technology stocks is likely to keep investors cautious across Asian markets in the near term.
