Hong Kong stocks rebounded on Thursday, with the Hang Seng Index closing 174 points, or 0.8 percent, higher at 23,055 thanks to a recovery in internet heavyweights.

Turnover reached HK$369.63 billion.

The tech index dropped 17 points, or 0.4 percent, to 4,454 while the China enterprises index rose 54 points, or 0.7 percent, to 7,612.

Market heavyweight Alibaba added 1.8 percent and Meituan climbed 3.4 percent, but weakness in chipmakers and AI names limited the gains.

Looking ahead, investors are waiting to see whether the central government announces policy support for the economy at this month's Politburo meeting.

"We continue to see only piecemeal consumer support, with July as the earliest window for an LPR (loan prime rate) cut," Citi said in a note.

Mainland stocks, meanwhile, fell to a three-week low, dragged down by a sharp selloff in chipmakers.

The benchmark Shanghai Composite Index ended down 83 points, or 2.03 percent, at 4,028.

The Shenzhen Component Index plunged 620 points, or 3.85 percent, to 15,498 while the ChiNext Index fared even worse, losing 243 points, or 5.71 percent, to close at 4,017.

China Resources New Energy shares tripled in their listing debut on the Shenzhen bourse after launching Asia's biggest IPO of 2026.

The tech-focused Star 50 Index lost 7.7 percent, the biggest single-day decline since April 2025, to slip from a record high.

The CSI Semiconductor Index also retreated from an all-time peak, plunging 9.4 percent in its biggest one-day decline in nearly four years. The index has more than doubled so far this year.

Chipmaker Naura snapped a 10-day rally that had powered it to record highs, tumbling by the daily 10 percent trading limit. Peers, including SMIC, Giga Device and Hua Hong Semiconductor, declined by 6.7 percent to 10 percent.

"Technology stocks cooled sharply as markets underwent a period of rotation," analysts at Huatai Futures said in a note. "However, the shift is probably short-lived, with the current pullback offering a favourable entry point for medium- to long-term positioning."

In Tokyo, the Nikkei slid 1,741 points, or 2.47 percent, to 68,733 while the broader Topix ended 0.09 percent higher at 4,013, helped by buying in cheaper shares after recent declines.

In Seoul, the Kospi plunged 655 points, or 7.89 percent, to 7,648, its lowest close in more than three weeks, as index heavyweights Samsung Electronics dived 9.06 percent and SK Hynix plummeted 14.57 percent.

"Korea is now the sharper version of the broader AI unwind," said Stephen Innes at SPI Asset Management.

"The issue is not whether Samsung, SK Hynix or Kioxia remain strategically important companies. They do.

"The issue is that a great earnings story can still become a terrible trading vehicle when leverage, momentum and crowded positioning all decide to leave through the same exit." (Agencies)


Edited by Edmond Fong