Mainland and Hong Kong stocks fell on Friday as Nasdaq-led tech rout spread across Asia, fueling fears that the AI boom might be losing steam. The benchmark Hang Seng Index in Hong Kong ended 1.3 percent lower, down 315 points, at 24,481 despite a 5.1 percent weekly gain, which was its best since March 2025. In China, the blue-chip CSI 300 Index dropped 1.4 percent but still ended the week with a 1.7 percent gain, snapping its 12-week losing streak. The Shanghai Composite Index ended the day down 40 points, or 1.1 percent, at 3,649, breaking a six-week losing streak to gain 1.4 percent weekly. The Shenzhen Component Index fell 2.57 percent and the ChiNext Index dived 3.96 percent. Tech sectors across Asia experienced heavy losses following a sharp decline in tech stocks in the United States, which wiped off trillions of dollars in market value. The AI index and the Star 50 index in China experienced significant drops before some losses were pared off. Companies with significant US market exposure, such as Zhongji Innolight and Eoptolink Technology, saw sharp declines.
While early panic selling brought in bargain hunters and some support measures implemented by Beijing, market analysts warn that the measures might not be sufficient to shield the market from external shocks. Tokyo’s Nikkei declined 5.96 percent for the day and 9.3 percent for the week—its worst performance in over six years—as political uncertainties in the United States weighed on AI investment. In Seoul, the Kospi tumbled 6.02 percent after falling 5.3 percent the previous day, bringing its weekly loss to 11.7 percent but still up 20 percent year-to-date.