Asian stocks mostly rose on the 27th, while Chinese stocks fell after an early advance and the Shanghai Composite closed at a 14-month low. Developments in AI-related stocks, the Bank of Japan and the US Federal Reserve were in focus, while moves in North American and Australian markets also rippled through.
Chinese stocks turned lower after rising early in the session, with the Shanghai Composite closing at 3648.30, down 1.3%. The CSI 300 Index also fell 1.3%, while Shenzhen's ChiNext fell 3.4% and the STAR Market 50 Index plunged 4.8% to its lowest level since March. The moves were apparently driven by continued selling pressure on AI-related stocks.
Asian markets mostly rose on the 27th. As investors awaited earnings announcements from AI-related companies and developments in interest rates, applications for AI-related IPOs boosted risk appetite, while selling of Chinese AI-related stocks continued. The CSI Semiconductor Index fell 5.8%, while the CSI Artificial Intelligence Index also fell about 4%.
In Hong Kong, the Hang Seng Index fell 0.7% and the Hang Seng Tech Index fell 1.5%. Indonesia's market declined on the impact of a downgrade warning for JSIC. In Korea, the Korea Composite Stock Price Index rose 3.09%, with the Kospi sharply higher and closing around 5638. Developments in the US market and the People's Bank of China's introduction of a new swap facility affected market liquidity.
On the 26th, the People's Bank of China announced that it would establish a swap facility as an emergency liquidity provision tool to address large-scale withdrawals by non-bank financial institutions. Huajin Securities pointed out that the facility could help lubricate short-term liquidity.
The Seoul market rose more than 3%, amid growing expectations that South Korea's GDP had expanded more than the market had forecast. Samsung Electronics and SK Hynix, the major semiconductor companies, rose approximately 4.2% and 5.2%, respectively. Moves in Shanghai, Hong Kong and Sydney affected the market as a whole.