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HK bucks trend amid Asian retreat from chipmakers

Xenia. W by Xenia. W
2 July 2026
in Business, News
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Asian shares skidded on Thursday as investors rotated out of chipmakers following a stellar quarter while currency and bond markets braced for US jobs data that could gives hints about the risk of interest rate hikes.

In Hong Kong, the benchmark Hang Seng Index bucked the trend by opening up 190 points, or 0.83 percent, at 23,071.

The China enterprises index was up 54 points, or 0.73 percent, at 7,613 while the tech index was 56 points, or 1.25 percent, higher at 4,528.

Across the border, the benchmark Shanghai Composite Index opened down 58 points, or 1.42 percent, at 4,054.

The Shenzhen Component Index plunged 390 points, or 2.41 percent, to 15,729 while the ChiNext Index was down 125 points, or 2.94 percent, at 4,135.

In Tokyo, the Nikkei opened 435 points, or 0.62 percent, lower at 70,039 before losing more ground. It fell 711 points, or 1.01 percent, to 69,763 at one stage before noon.

In Seoul, the Kospi trimmed its losses to be 239 points, or 2.88 percent, lower at 8,064 at one stage before midday after plunging 370 points, or 4.46 percent, to 7,933 at the opening of trading.

Foreign investors sold Asian equities at the fastest pace in at least 16 years in the first half of 2026, as the blistering AI-driven rally forced them to trim their biggest winners in such places as South Korea and hunt for lower-priced laggards.

Investor attention is on US non-farm payrolls data due on Thursday.

Economists in a poll expect a rise of 110,000 jobs for June, but forecasts range widely from gains of 25,000 to 200,000, suggesting the chance for a surprise is high. The jobless rate is forecast to stay steady at 4.3 percent.

“For the equity traders, there is probably no single rigid playbook to work from. Ideally, equity players want a Goldilocks outcome: respectable job creation, a stable unemployment rate,” said Chris Weston, head of research at Pepperstone.

“Anything that avoids a marked increase in the implied probability of near-term rate hikes is likely to be welcomed by equity bulls.” (Reuters & Xinhua)

Tags: BusinessFinance
Xenia. W

Xenia. W

Xenia is a Hong Kong–based writer and content creator focusing on financial markets, policy and the city’s evolving economic landscape. With over ten years of experience in higher education and tourism‑related projects, she specialises in transforming complex information into clear, reader‑friendly insights for both professional and general audiences. ​ Drawing on a background in bilingual Chinese–English translation and editing, Xenia writes across topics including Hong Kong and US stocks, market structure, macro trends and how policy shifts affect everyday investors.

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