Hong Kong stocks head for worst month since October on AI disruption angst



Hong Kong stocks headed for a monthly decline as jitters about artificial intelligence’s potential disruption to traditional industries continued to weigh on investor sentiment.

The Hang Seng Index rose 0.6 per cent to 26,545.09 as of 9.45am on Friday. For the month, the benchmark has dropped 3.2 per cent, the steepest since October. The Hang Seng Tech Index gained 0.9 per cent.

On the mainland, the CSI 300 Index slipped 0.4 per cent and the Shanghai Composite Index retreated 0.1 per cent.

Sun Hung Kai Properties, Hong Kong’s biggest developer by market capitalisation, rallied 5.4 per cent to HK$143.70 after posting a 36 per cent profit increase in the first half. CK Asset Holdings rose 3.4 per cent to HK$49.72, extending gains after agreeing to sell a UK power distributor with other listed vehicles owned by billionaire Li Ka-shing.

The so-called AI scare trade has roiled global stocks this month, with investors wary that the technology could upend industries from logistics and software to wealth management. Even strong earnings results from Nvidia did little to reverse sentiment, as revenue fell short of Wall Street’s most bullish estimates.

Other major Asian markets traded on a weak note. Japan’s Nikkei 225 slipped 0.7 per cent, while South Korea’s Kospi retreated 2.1 per cent and Australia’s S&P/ASX 200 was little changed.

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