Regional stocks generally closed higher on Monday as a late rally in tech shares offset concerns over weak economic data and a slump in property stocks following Beijing's policy overhaul.

But the benchmark Hang Seng Index in Hong Kong inched down 17 points, or 0.1 percent, to 25,566 on turnover of HK$314.82 billion.

The tech index rose 14 points, or 0.3 percent, to 4,619 while the China enterprises index was 22 points, or 0.3 percent, higher at 8,513.

Up north, the blue-chip CSI300 Index recouped early losses to end 0.4 percent higher while the Shanghai Composite Index rose 34 points, or 0.86 percent, to 3,986.

The Shenzhen Component Index was 61 points, or 0.44 percent, higher at 14,015 while the ChiNext Index was 14 points, or 0.42 percent, up at 3,438.

The combined turnover of stocks covered by the main Shanghai and Shenzhen indices was 2.13 trillion yuan, up from 2.1 trillion yuan on Friday.

Shares in the sectors of short drama and film production, liquid-cooled servers, consumer electronics and computing power leasing led gains while precious metals, photovoltaic equipment, innovative pharmaceuticals and agriculture sectors were among top losers.

The CSI Cloud Computing 50 Index gained 4 percent, the CSI Big Data Industry Index advanced 3.5 percent, the CSI Integrated Circuits ⁠Index climbed 3 percent and the CSI Artificial Intelligence Index strengthened 2.8 percent.

The rally in tech ⁠shares helped ease economic concerns after official data showed China's factory activity improved in August on stronger demand, although it ⁠remained in contraction for a second ‌consecutive month.

Meanwhile, services and construction activity remained weak, underscoring deepening imbalances in the economy.

UBS ‌Securities Chief China Economist Yu Song expected a round of additional support later in ⁠the year, citing "more obvious risks of not reaching the annual growth target".

Market sentiment was also initially dampened by a selloff in property shares after China on Friday rolled ‌out measures to reduce developers' dependence on presale funds.

"The effort to shrink the presales system will lead to a decline in housing starts," Zhang Xiaoxi, analyst at Gavekal Dragonomics said in a note, predicting that "more private-sector developers ⁠will exit ‌the market" as banks favour state-owned developers.

In Tokyo, the Nikkei share gauge inched down by 93 points, or 0.14 percent, closing at 66,311 as rising expectations for central bank rate hikes weighed on risk sentiment. The broader Topix slipped nine points, or 0.23 percent, to 4,156.

In Seoul, the Kospi ended up 31 points, or 0.46 percent, at 6,820. (Reuters & Xinhua)


Edited by Edmond Fong