Mainland stocks edged up on Monday as technology stocks jumped, offsetting losses in banking and insurance shares following Beijing's capital-injection plan, while broader markets were muted as investors watched developments in Sino-US ⁠relations.

In Hong Kong, the benchmark Hang Seng Index dropped 237 points, or 0.9 percent, to 25,413 on turnover of HK$209.67 billion.

The tech index dropped 42 points, or 0.9 percent, to 4,527 while the China enterprises index fell 125 points, or 1.5 percent, to 8,429.

Up north, the Shanghai Composite Index inched up two points, or 0.07 percent, to end at 3,932 on turnover of 897.9 billion yuan.

The Shenzhen Component Index rose 257 points, or 1.91 percent, to 13,774 on turnover of 1.05 trillion yuan.

Tech sectors climbed as chip-related firms tracked US peers higher. The ChiNext Composite index gained 112 points, or 3.41 percent, to 3,398 on turnover of 508.5 billion yuan while Shanghai's tech-focused Star50 index rose 2.4 percent.

The chip sector rallied 3.4 percent and the CSI 5G Communication Index was ⁠up more than 6 percent, with heavyweight Zhongji Innolight jumping ⁠by its 10 percent daily limit.

⁠However, the insurance sector declined 2.6 percent and the banking sector lost 1.5 percent, after the Finance Ministry said it will ⁠lead a combined US$54 billion ‌in capital injections into state-owned insurers and banks in a coordinated push by Beijing to shore up ‌capital across its financial system.

Shifts in expectations for US interest rates will be key for market direction ⁠this week, ‌while defensive large-cap stocks are likely to remain ‌relatively resilient, analysts said.

In Tokyo, the Nikkei closed 1,378 points, or 2.12 percent, higher at 66,399 led by chip and AI-linked stocks after gains in US semiconductor shares. The broader Topix climbed 22 points, or 0.55 percent, to 4,125.8.

In Seoul, the Kospi ended up up 308 points, or 4.61 percent, at 6,995, its highest closing level since July 23 and the biggest daily percentage rise since August 20. (Reuters & Xinhua)



Edited by Edmond Fong