Mainland stocks fell to end the week lower on Friday, tracking weakness across broader Asian markets that saw investors taking profits on AI and semiconductor shares amid a strong rally this year.

In Hong Kong, the Hang Seng Index dropped 291 points, or 1.2 percent, to 24,961 on turnover of HK$342.81 billion, sending the benchmark down 0,9 percent for the week.

The China enterprises index fell 65 points, or 0.8 percent, to 8,436 while the tech index was 86 points, or 1.7 percent, down at 4,888.

Up north, the Shanghai Composite Index ended 30 points, or 0.74 percent, lower at 4,027 on turnover of 1.36 trillion yuan.

Hong Kong-listed shares of AIA Group, HSBC Holdings and Standard Chartered fell sharply on Friday on growing concerns that Beijing's tighter capital controls could dent the business of global financial firms with exposure to mainland China.

The Shenzhen Component Index was 346 points, or 2.21 percent, down at 15,314 on turnover of nearly 1.71 trillion yuan while the ChiNext Index slipped below the 4,000 level, plunging 130 points, or 3.2 percent, to 3,957 on turnover of 816 billion yuan.

In Tokyo, the Nikkei share average ended 882 points, or 1.3 percent, down at 66,588 in a second consecutive day of losses as momentum slowed in the red-hot technology sector, eking out a 0.3 percent gain for the week.

The broader Topix slid close to three points, or 0.07 percent, to 3,949.

In Seoul, the Kospi ended 478 points, or 5.54 percent, down at 8,160 in its biggest daily percentage fall since May 15 to end the week 3.7 percent lower as a global tech pullback and stalling US-Iran peace talks heavily dented investor risk appetite.

Chinese onshore AI and communication shares tumbled in the afternoon session, down 3.6 percent and 4 percent, respectively, following a softer-than-expected AI outlook from US chipmaker Broadcom and broader declines in AI supply chain globally.

The few bright spots were financials and healthcare shares, up 0.7 percent and 0.5 percent, respectively.

"The tech sector remains the core driver of long-term outperformance in China's equity markets," said Janice Hu, UBS China president.

"We've seen technological innovation and semiconductor supply chain localisation over the past, and we expect continued strong policy support. Combined with ample domestic liquidity, this has allowed China's big tech sector to demonstrate a unique pace of monetisation."

Onshore chip stocks fell 4.7 percent, after gaining nearly 50 percent year-to-date.

China's central bank resumed injections via its daily liquidity operations on Friday, following a two-day hiatus. (Reuters/Xinhua)


Edited by Tony Sabine