The benchmark Hang Seng Index ended 124 points, or 0.5 percent, up at 26,009 on turnover of HK$255.18 billion.
The tech index was 46 points, or one percent, higher at 4,875 while the China enterprises index was up 40 points, or 0.5 percent, at 8,652.
Alibaba shares jumped seven percent after it released what it said is its largest and most capable artificial-intelligence model, the Qwen3.8-Max.
China’s manufacturing sector expanded at its slowest pace in four months in July, as output and new orders rose more slowly, while export orders returned to growth after a contraction, a private-sector survey showed on Monday.
Up north, the Shanghai Composite Index ended down 22 points, or 0.59 percent, at 3,809 on turnover of 952.257 billion yuan.
The Shenzhen Component Index fell 130 points, or 0.96 percent, to 13,448 on turnover of 1.05 trillion yuan while the ChiNext Index was 41 points, or 1.24 percent, down at 3,302 on turnover of 486.5 billion yuan.
The selling in AI-related stocks globally, with the chip-heavy Kospi index down 20 percent last month in South Korea, has rocked markets and pushed investors to reassess the valuation of China semiconductor stocks.
The tech-focused Star50 Index fell 5.1 percent while the CSI All Share Semiconductor Index dropped 6.9 percent.
However, shares of newly listed memory chip giant CXMT rose 1.9 percent as its valuation still appears reasonable compared to other smaller players in the sector.
“We believe that, under the broad assumption that the AI industry trend has not yet reached bubble territory nor come to an end, the recent pullback could actually improve the risk-reward profile of AI trades from a medium- to long-term perspective,” analysts at CICC said in a note.
“Therefore, even though most investors still view AI technology as the core investment theme, after such violent turbulence, a degree of portfolio rebalancing is likely a natural response for many,” they said.
The Nikkei ended down 607 points, or 0.94 percent, at 63,754 as Toyota and Suzuki took the brunt of fallout on exporters from the joint US-Japan intervention on the yen.
The Topix shed 43 points, or 1.08 percent, to 3,960.
In Seoul, the Kospi plunged 338 points, or 5.12 percent, to 6,257 as investors sold off heavyweight chipmakers following a record rally in the previous session. (Reuters/Xinhua)
