Asian Markets Fluctuate Amid US Tech Selloff; Hang Seng Edges Down
AM730 · 6 SOURCESabout 4 hours ago2 MIN
Summary
Asian equity markets experienced significant turbulence this week, driven by the sharp selloff in US AI-related stocks on November 5. The Hang Seng Index opened 143 points higher at 24,625 on November 9 before erasing all gains and closing down 32 points at 24,448, with a turnover of HK$173.7 billion . Meituan was the biggest drag among blue chips, falling 6.5% to HK$75.15 . The Japanese Nikkei 225 suffered its steepest decline on November 6, plummeting 3,725 points or 6.1% to 57,352, before staging a recovery with a 1,426-point gain on November 9 . Market strategists note that capital has been flowing into undervalued Hong Kong stocks lacking AI exposure, with the HSI targeting 25,000 as the next resistance level .
Key Points
- The Hang Seng Index closed at 24,448 on November 9, down 32 points or 0.13%, with the State-owned Enterprises Index falling 13 points to 8,260 and the Tech Index dropping 37 points to 4,040
- Meituan (stock code: 3690) led blue chip decliners with a 6.53% loss to close at HK$75.15, while Tencent fell 0.33% to HK$418.4 and Alibaba declined 0.29% to HK$104.6
- Semiconductor stocks rebounded with the Philadelphia Semiconductor Index rising 4.21%, lifting SMIC (981) by 1.01% to HK$46.04 and Hualong Hongli (1347) by 2.35% to HK$71.85
- Japan's Nikkei 225 index showed extreme volatility, tumbling 6.1% on November 6 to 57,352 before surging 2.48% on November 9 to 58,861, while South Korea's KOSPI fell to 5,057 on November 9
- According to Li Weijie, Chief Investment Officer of Greater China Momentum Strategy at Yanyu Securities, capital continues flowing into undervalued Hong Kong stocks lacking AI exposure, with support at 24,200-24,300 and resistance at 25,100
Why It Matters
The dramatic swings in Asian markets reflect growing investor caution about AI valuations following the US tech sector's pullback, yet Hong Kong's relatively cheap valuations are attracting defensive capital flows. For Hong Kong investors, Meituan's significant underperformance highlights ongoing concerns about China's platform economy amid regulatory uncertainties, while the resilience in semiconductor stocks suggests continued confidence in China's push for technological self-sufficiency.
The dramatic swings in Asian markets reflect growing investor caution about AI valuations following the US tech sector's pullback, yet Hong Kong's relatively cheap valuations are attracting defensive capital flows. For Hong Kong investors, Meituan's significant underperformance highlights ongoing concerns about China's platform economy amid regulatory uncertainties, while the resilience in semiconductor stocks suggests continued confidence in China's push for technological self-sufficiency.