Mainland and Hong Kong stocks ended lower on Monday as investor focus shifted from US-China talks to escalating tensions in the Middle East and a global bond selloff, while a string of weaker-than-expected activity data also weighed on sentiment.

The benchmark Hang Seng Index ended 287 points, or 1.1 percent, down at 25,675 on turnover of HK$292.71 billion.

The China enterprises index was 93 points, or 1.1 percent, down at 8,597 while the tech index was 96 points, or 1.9 percent, down at 4,844.

Up north, the benchmark Shanghai Composite Index ended down almost four points, or 0.09 percent, at 4,131 on turnover of 1.32 trillion yuan.

The Shenzhen Component Index closed 31 points, or 0.2 percent, lower at 15,530 on turnover of 1.58 trillion yuan while the ChiNext Index lost 14 points, or 0.36 percent, end at 3,914 on turnover of 757.35 billion yuan.

In Tokyo, the benchmark Nikkei 225 Index fell 593 points, or 0.97 percent to close at 60,815 while the broader Topix slid 37 points, or 0.97 percent, to 3,826.

In Seoul, the benchmark Kospi closed up 22 points, or 0.31 percent at 7,516 after falling up to 4.68 percent earlier in the day, triggering a "sidecar" trading curb.

Market sentiment weakened after data showed China's growth lost momentum in April, with industrial output and retail sales both missing expectations as the world's second-largest economy grappled with higher energy costs from the Iran war and persistently weak domestic demand.

Fresh attacks in the Gulf pushed oil prices and bond yields higher, further dampening investors' risk appetite.

A drone strike caused a fire at a nuclear power plant in the United Arab Emirates, while Saudi Arabia said it intercepted three drones.

US President Donald Trump also warned Iran to move "fast" on a deal.

Investors are increasingly concerned that central banks may tighten policy further to contain inflation pressures, overshadowing the Trump-Xi summit, which produced limited concrete outcomes.

"In our view, the summit delivered short-term stabilisation for both leaders," Nomura economist Lu Ting said, referring to a new paradigm described by Washington as a pragmatic arrangement and by Beijing as a "constructive strategic stability US-China Relationship".

"We believe the summit is overall a success, though it might disappoint some people who had too high expectations right before the summit."

China-listed agriculture stocks fell more than two percent after the White House said Beijing committed to buying at least US$17 billion worth of US agricultural products annually from 2026 to 2028.

In contrast, Chinese chipmakers rose after US officials indicated during the two-day summit in Beijing last week that semiconductor export controls were not a key issue, suggesting any breakthrough on Nvidia's H200 chip sales to China remained distant. (Reuters/Xinhua)


Edited by Tony Sabine