HK stocks down as mainland weighs inflation data

Mainland stocks ended on Wednesday at their lowest level in more than a year as a sell-off in AI-related supply chain shares deepened, while investors digested mixed domestic inflation data. In Hong Kong, the benchmark Hang Seng Index edged down 31 points, or 0.1 percent, to 24,314. The tech index rose 37 points, or 0.9 percent, to 4,174 but still hovered near a two-year low, while the China enterprises index inched up eight points, or 0.1 percent, to 8,183. Up north, the Shanghai Composite Index fell 33 points, or 0.88 percent, to close at 3,767 on turnover of 662.49 billion yuan. The CSI300 Index closed 1.4 percent down, hitting its lowest level since August 2025 in late trade. The Shenzhen Component Index dived 243 points, or 1.97 percent, to 12,110 on turnover of 751.89 billion yuan. The ChiNext Index plunged 91 points, or 3.1 percent, to 2,866on turnover of 359.84 billion yuan. Mainland producer prices rose at their fastest pace in more than four years in September, while consumer inflation came in below expectations. Higher oil and commodity prices lifted factory-gate costs, even as weak domestic demand kept broader price pressures contained. Energy-related stocks rose as oil prices climbed on Saudi supply risk. The coal index rose 1.1 percent, while the CSI Energy Index climbed nearly 2 percent. Consumer staple shares gained 0.3 percent. Meanwhile, sentiment towards AI supply chain shares turned more negative in the afternoon session. The 5G Communication Index fell 3.8 percent. The tech-focused Star50 Index was down 3.3 percent. Zhongji Innolight, a leading maker of optical transceivers used in AI data centres, slumped 5.7 percent. China's stock benchmarks are near levels hit two years ago, when a Beijing-led stimulus bonanza lit up share prices and boosted hopes of a slow bull run, which is now limping into a three-month downtrend. HSBC analysts cut their end-2026 targets for the Shanghai Composite, CSI300 and Shenzhen Composite indexes by nine to 15 percent to 4,100, 4,800 and 14,500, respectively, implying upside of 8 percent to 15 percent from current levels. Value stocks have outperformed growth since July, but HSBC said the trend could be temporary, citing growth stocks' lower valuations and stronger momentum in earnings revisions. In Tokyo, the Nikkei share average gave up early gains to end 33 points, or 0.049 percent, lower at 67,744 as chip-related shares lost ⁠ground after Dutch chip tool maker ASML reported earnings. The broader Topix edged almost 14 points, or 0.34 percent, lower to 4,096. That pattern was repeated in Seoul, with the Kospi closing down 26 points, or 0.44 percent, at 6,008, extending its losing streak to a sixth consecutive session and marking its lowest close since July 30. (Reuters & Xinhua) Edited by Raymond Yeung

2026-10-14 17:50:00