Mainland stocks closed lower on Thursday, snapping a two-session post-Lunar New Year rally, as investors held off on major moves ahead of an annual parliamentary meeting next week.

In Hong Kong, the benchmark Hang Seng Index ended the day down 384 points, or 1.44 percent, at 26,381.

The China enterprises index was down close to 220 points, or 2.44 percent, at 8,814 while the tech index was down 151 points, or 2.87 percent, at 5,109, its lowest level since last June.

Across the border, the benchmark Shanghai Composite Index closed down less than one point, or 0.01 percent, at 4,146.

The Shenzhen Component Index was up almost 30 points, or 0.19 percent, at 14,503 while the ChiNext Index, tracking China's Nasdaq-style board of growth enterprises, lost close to 10 points, or 0.29 percent, to hit 3,344.

In Tokyo, the Nikkei share average surpassed the 59,000 mark for the first time, led by software-related shares as investor fears over disruption from artificial intelligence eased.

The benchmark Nikkei 225 Index ⁠rose 170 points, or 0.3 percent, to close at 58,753, an all-time closing high, after rising as high as 59,332 in earlier trade. So far, the Nikkei is up 16.4 percent for the year. The broader Topix climbed 37 points, or 1 percent, to 3,880.

In Seoul, the benchmark Kospi closed up 223 points, or 3.67 percent, at 6,307, the highest close on record and marking a sixth straight session of gains.

Property stocks led the declines on the mainland, with the CSI 300 Real Estate Index falling 3.3 percent, erasing all gains from Wednesday after Shanghai further eased home-purchase eligibility for non-residents.

Also weighing on markets, the liquor sector weakened 1.5 percent and the energy ⁠sector lost nearly 1 percent.

"With the Shanghai Composite Index gradually ⁠approaching the highs before this ⁠round of correction, the spring rally has entered its second half," Huatai Futures analysts said in a note.

⁠Trading sentiment has cooled following ‌the post-Lunar New Year catch-up bounce, with market focus now shifting to the upcoming "Two Sessions" meetings of the National People's ‌Congress and Chinese People's Political Consultative Conference ⁠for fresh policy signals and guidance, analysts said.

The closely watched annual parliamentary meeting will begin on March 5.

Meanwhile, the CSI ‌AI Index jumped 1.7 percent and the info tech sector climbed 1.5 percent, joining a regional tech rally as upbeat earnings from AI darling Nvidia soothed concerns over AI-driven disruptions.

DeepSeek, the Chinese artificial intelligence ⁠lab that ‌is expected to launch a major update, has ‌granted early access to domestic suppliers including Huawei Technologies, adding fresh optimism towards domestic AI development. (Reuters & Xinhua)



Edited by Thomas McAlinden