Chinese tech shares jumped on Thursday, helping major indexes notch their best month since August, while Hong Kong stocks fell after the US Federal Reserve flagged rising inflation concerns.

The benchmark Hang Seng Index ended down 335 points, or 1.28 percent, at 25,776.

The China enterprises index was down 123 points, or 1.41 percent, at 8,681 while the tech index was down 38 points, or 0.79 percent, at 4,871.

Across the border, the Shanghai Composite Index closed up four points, or 0.1 percent, at 4,112 on turnover of 1.28 trillion yuan, putting the benchmark up 5.66 percent for the month for its biggest monthly gains since August.

The Shenzhen Component Index was down 13 points, or 0.09 percent, at 15,107 on turnover of 1.46 trillion while the ChiNext Index was down 10 points, or 0.3 percent, at 3,677 on turnover of 638.1 billion yuan.

Furniture, ceramics, and aircraft manufacturing stocks led gains while steel, pesticides and fertilisers and electric-power sectors tumbled.

The ChiNext Index, tracking China's Nasdaq-style board of growth enterprises, lost 0.27 percent to close at 3,677.

Tech shares outperformed the broader market, with China's tech-focused Star 50 index jumping 5.19 percent, as artificial intelligence-related stocks advanced across Asia, buoyed by a raft of generally upbeat earnings reports.

⁠Chinese chip designer Cambricon Technologies closed up 20 percent, hitting its ⁠daily upside limit, after ⁠it said its first-quarter net profit soared 185 percent year on year.

China's factory activity expanded for a second straight month in April ⁠on firmer output and ‌stockpiling activity, an official survey showed, suggesting that growth momentum held despite external shocks stemming from the Middle ‌East war.

"Price pressures stayed firmly in expansionary territory, suggesting China's reflation is continuing," ⁠said Lynn Song, chief economist for Greater China at ING.

Fed chairman Jerome Powell closed out eight years as ‌head of the US central bank with interest rates on hold, rising concerns about inflation, and an announcement that he would stay on as a Fed governor for now to defend the agency's independence from Trump administration "battering".

Mainland financial markets will be closed for the Labour Day holiday from Friday, and trading ⁠will resume on Wednesday. Hong Kong markets will be closed on Friday.

In Tokyo, the Nikkei share average ended down 632 points, or 1.1 percent, at 59,284 but posted a monthly gain of 16.1 percent, its strongest since October. The broader Topix lost almost 45 points, or 1.2 percent, at 3,727.

In Seoul, the Kospi closed down 92 points, or 1.38 percent, at 6,598 for the day but up 30.6 percent for the month for its sharpest monthly gain since January 1998, with the day's gains fuelled by ⁠a rally in semiconductor-related shares amid an AI boom. (Reuters & Xinhua)



Edited by Thomas McAlinden