Mainland stocks ended lower on Thursday as a deepening selloff in tech shares overshadowed the US Federal Reserve's decision to keep interest rates unchanged.

In Hong Kong, the benchmark Hang Seng Index fell 136 points, or 0.6 percent, to 22,958 on turnover of HK$189.45 billion.

The tech index dived 109 points, or 2.8 percent, to 3,744 while the China Enterprises Index slipped 35 points, or 0.5 percent, to 7,755.

On the mainland, the Shanghai Composite Index closed down 30 points, or 0.82 percent, at 3,651 on turnover of 715.62 billion yuan while the blue-chip CSI300 index fell one percent.

The Shenzhen Component Index plunged 334 points, or 2.92 percent, to 11,138 on turnover of 840.89 billion yuan while tech shares were among the main drags, with the startup board ChiNext Composite index ChiNext Index diving 117 points, or 4.45 percent, to 2,517 on turnover of 419.35 billion yuan. Shanghai's tech-focused Star50 index tumbled 4.3 percent to notch the weakest close since September 2025.

CSI 5G communications, which tracks 5G communications companies, plunged 7.4 percent.

Robot maker Yushu Technology, also known as Unitree, slumped 4.8 percent after its third-quarter net profit fell despite revenue rising 70 percent from a year earlier in its first earnings report since listing.

"Valuations for the tech AI hardware names are now close to the historical trough and imply a major deceleration in EPS growth ahead," said James Wang, head of China strategy at UBS Investment Bank Research.

"We are wary that investor sentiment on AI is fragile; however, we believe the risk-reward is looking more attractive again, and interest may come back towards the end of the year as investors rebuild their portfolios for the new year."

The Fed held interest rates steady, as expected, on Wednesday, opting to delay any changes to borrowing costs until after next week's US midterm elections while it awaits further data on inflation, which the central bank said "remains elevated".

In Tokyo, the Nikkei ended 705 points, or 1.1 percent, higher at 64,659 in a volatile session that began with gains before briefly turning negative. The broader Topix index also reversed early losses to end the day up 11 points, or 0.29 percent, at 4,003.

In Seoul, the Kospi fell 74 points, or 1.24 percent, to 5,937 as the shares of chip giant Samsung Electronics dived over a lack of fresh shareholder-return plans and an outlook that lagged rival SK hynix's despite posting a 15-fold jump in quarterly profit. (Reuters & Xinhua)


Edited by Aaron Tam