Asian Markets Mixed: Japan and Korea Drop on Tech Weakness, Hong Kong Rises on China PMI Boost

Asian equities started the week on a cautious note, with Japan and South Korea leading declines after Wall Street’s tech slump, while Hong Kong outperformed on stronger-than-expected Chinese factory data.

Japan and Korea Under Pressure

Tokyo’s Nikkei 225 tumbled nearly 2%, dragged lower by sharp losses in tech exporters. Advantest Corp shares sank more than 9%, while SoftBank Group fell almost 7%. The broader TOPIX index slipped around 0.8%.

In South Korea, the KOSPI slid 1.1%, led by losses in semiconductor giants. Samsung Electronics dropped 2.5%, and SK Hynix shed 4.5%, after the U.S. revoked approvals for chip equipment at their China plants.

Australia’s ASX 200 also weakened, down 0.7%, while Singapore’s Straits Times Index stayed flat. India’s Nifty 50 bucked the trend with modest gains of 0.4%.

Hong Kong Surges on PMI Optimism

In contrast, Hong Kong’s Hang Seng Index jumped nearly 2%, making it the region’s standout performer. The boost came after a private Caixin PMI survey showed China’s manufacturing activity expanding to 50.5 in August, the fastest pace in five months, sparking hopes of renewed industrial demand.

The positive reading contrasted with official PMI data, which continued to show contraction, but investors took it as an early sign of stabilization. Meanwhile, China’s Shanghai Composite added 0.1%, while the CSI 300 remained largely flat.

Outlook

Regional sentiment remains cautious ahead of key U.S. labor market and inflation data later this week, alongside ongoing tariff and trade uncertainties. The resilience in Hong Kong and Chinese data may provide some optimism, but Asian equities remain vulnerable to U.S. tech moves and global policy risks.

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