In Hong Kong, the benchmark Hang Seng Index opened down 47 points, or 0.2 percent, at 23,568 before jumping up briefly to 23,783 on news that the People’s Bank of China intends to allow the national foreign exchange reserve further increase investment in Hong Kong’s markets.
The benchmark was 16 points up at 23,633 at one stage in mid-morning trade.
The tech index opened down 16 points, or 0.37 percent, at 4,524 while the China enterprises index was 31 points, or 0.41 percent, lower at 7,780.
On the mainland, the Shanghai Composite Index opened down 21 points, or 0.54 percent, at 4,019.
The Shenzhen Component Index was 71 points, or 0.46 percent, lower at 15,345 while the ChiNext Index was down 17 points, or 0.44 percent, at 3,931.
In Tokyo, the Nikkei 225 opened down 277 points, or 0.4 percent, at 69,460 before losses accelerated to put the benchmark 844 points, or 1.21 percent, lower at 68,893 at one stage before noon.
Japan is scheduled to hold an auction of 30-year government bonds on Tuesday. If the auction is weak, government bond yields could rise further and accelerate selling of the yen, said Akihiko Yokoo, senior analyst at MUFG Bank.
In Seoul, the Kospi plunged 307 points, or 3.82 percent, to 7,743 at one stage before midday, dragged down by chipmakers amid investor concerns about whether record earnings driven by AI demand would be sustainable. The benchmark had opened down 132 points, or 1.64 percent, at 7,919.
The losses came as Samsung Electronics, the world’s largest memory chipmaker, estimated April-June operating profit at 89.4 trillion won, a third straight quarter of record operating profit.
The sharp rally in AI-related shares has likely been driven by concerns over the economy and inflation, with worries about the outlook – including worsening tensions involving Iran – prompting investors to seek refuge in the sector, said Toru Suehiro, chief economist at Daiwa Securities.
“While it would be healthier for share prices to move in line with the economy and the real economy, those conditions do not change that rapidly,” Suehiro said in a note, adding that markets were therefore likely to remain range-bound. (Reuters & Xinhua)
