In Hong Kong, the benchmark Hang Seng Index ended 387 points, or 1.59 percent, lower to 23,924.
The tech index was 64 points, or 1.39 percent, lower at 4,604 while the China enterprises index was 167 points, or 2.06 percent, down at 7,976.
Hong Kong tracked losses on Wall Street as investors bet the US Federal Reserve’s next move would be a rate hike.
The Fed held rates steady on Wednesday, but new quarterly projections showed nine of its 19 officials anticipating a hike by the end of 2026.
“We expect Asian markets to initially follow the US in reacting to the risk of higher rates,” said Tai Hui, APAC chief market strategist at JP Morgan Asset Management.
“That said, with a US-Iran deal on the horizon, investors would interpret the Fed’s hawkishness as precautionary, which should help reverse the US dollar’s strength and be more supportive of Asian equities.”
On the mainland, the Shanghai Composite Index ended 17 points, or 0.43 percent, lower at 4,090 on turnover of 1.56 trillion yuan.
The Shenzhen Component Index rose 149 points, or 0.94 percent, to 16,030 on turnover of 1.75 trillion yuan.
The start-up board ChiNext Index climbed 85 points, or 2.05 percent, to close at 4,252, a record closing high, on turnover of 862.18 billion yuan.
The gains came as Beijing said on Wednesday it would support listings of startups in “future industries” such as quantum technology, nuclear fusion and brain-computer interfaces.
The tech-focused Star 50 leapt 3.8 percent to notch a record close.
“A new wave of technological revolution, led by AI, is being integrated into production and daily life at an unprecedented pace,” said Wu Qing, chairman of the China Securities Regulatory Commission, at a forum in Shanghai.
Stocks in traditional sectors sold off. A sub-index tracking banking shares lost 2.6 percent, while property shares dropped 2.8 percent.
In Tokyo, the Nikkei share gauge surged 1,151 points, or 1.65 percent, past the key 71,000 level for the first time to end at 71,053 after touching an intraday high of 71,398.58. The broader Topix gained almost 55 points, or 1.37 percent, to hit 4,068, also an all-time high.
In Seoul, the benchmark Kospi too rocketed up 199 points, or 2.25 percent, to top the 9,000 milestone for the first time, finishing at 9,063 as chipmakers hit record highs on AI optimism.
Hong Kong and mainland markets will be closed on Friday for the Dragon Boat Festival. (Reuters & Xinhua)
