Asian stock markets faced significant selling pressure, with key indices in Japan and South Korea dropping sharply earlier in the day. The Nikkei 225 and the KOSPI both fell more than 3% at one point, with major tech components like SK Hynix and Samsung Electronics also tumbling. This weakness followed a sell-off in large-cap U.S. tech stocks overnight, which heightened investor concerns over the near-term outlook for the AI trade.
Where to Begin
On June 26th, Chinese A-shares also trended lower after opening. The three major indices were all down at the start of trading, with the ChiNext board declining over 1%. While the semiconductor and chip sectors remained active, with silicon wafer stocks rising, other areas faced pressure. Photovoltaic concept stocks saw mixed action, while computing hardware shares adjusted lower. Sectors like optical communication, PCB, and CPO all fell. AI application and shipping stocks also weakened.
Hong Kong's market continued its downward trajectory. Both the Hang Seng Index and the Hang Seng TECH Index opened lower and extended losses, with the TECH Index dropping over 2% early on. Technology and internet stocks were broadly lower, with Alibaba (BABA) shares down more than 4%. Chip stocks, AI large model stocks, and consumer electronics sectors also saw widespread declines.
Bond and Commodity Markets
In the bond market, government bond futures fluctuated but moved higher. In commodities, most domestic futures contracts were down, with polysilicon leading the losses.
Key Market Figures at Time of Writing
A-Shares: The Shanghai Composite Index was down 0.96%, the Shenzhen Component Index fell 1.74%, and the ChiNext Index dropped 2.19%.
Hong Kong Shares: The Hang Seng Index declined 0.91%, while the Hang Seng TECH Index was down 2.23%.
Bonds: Government bond futures were mixed. The 30-year contract was up 0.18%, the 10-year contract gained 0.04%, and the 5-year contract rose 0.03%. The 2-year contract was flat.
Commodities: Most domestic commodity futures were lower. Fuel oil and asphalt rose over 1%, while soybean meal, crude oil, containerized freight index, stainless steel, Shanghai gold, platinum, and Shanghai copper moved higher. Rapeseed meal, Shanghai tin, glass, eggs, platinum, Shanghai aluminum, manganese silicon, hot-rolled coil, coking coal, pulp, rebar, industrial silicon, iron ore, and coke all fell. Caustic soda, Shanghai silver, alumina, and Shanghai nickel dropped over 1%, with lithium carbonate, rubber, and polysilicon down more than 2%.
Intraday Market Moves
09:52: The CPO concept sector declined, with Tai Chen Guang down over 11%. Xin Yi Sheng and Zhong Ji Xu Chuang fell more than 5%. Chang Ying Tong, Hui Lv Sheng Tai, Shi Jia Guang Zi, Guang Xun Ke Ji, Heng Tong Guang Dian, and Yong Ding Gu Fen also saw losses.
09:45: Glass substrate concept stocks bucked the downtrend in early trading. Qi Bin Group and Lai Bao Gao Ke hit their daily upside limits. Kai Sheng Ke Ji, Li Nuo Yao Bao, Chang Xin Ke Ji, and Mei Di Kai followed with gains. The move followed news that Corning has introduced its next-generation glass optical interconnect component, Glass Bridge, which directly connects photonic integrated circuits (PICs) to optical fibers. This technology targets the CPO and glass substrate semiconductor packaging markets, providing connectivity for next-generation AI data center architectures.
09:35: The newly listed stock N Hui Ke surged 305% in early trading, triggering a temporary trading halt, with turnover exceeding 17 billion yuan. Company information shows it is primarily engaged in the R&D, manufacturing, and sales of core display devices like semiconductor display panels and smart display terminals.
09:33: Both the Shenzhen Component Index and the ChiNext Index fell more than 1%. Sectors like lab-grown diamonds, semiconductor chips, and computing hardware were among the biggest decliners. Nearly 4,200 stocks across the Shanghai, Shenzhen, and Beijing markets were in negative territory.
09:33: The Hang Seng TECH Index fell over 2% intraday, with the Hang Seng Index down nearly 1%. Sunny Optical Technology and Zhi Pu dropped more than 6%.
09:26: The Shanghai Composite Index opened 0.52% lower, with the ChiNext Index down 1.2%. Sectors like fintech, lab-grown diamonds, PCB, memory, CPO, photovoltaics, and semiconductors weakened. Industrial metals, oil & gas, chemicals, and power sectors strengthened. The new listing Hui Ke Gu Fen opened over 212% higher.
09:21: The Hang Seng Index opened down 0.54%, with the Hang Seng TECH Index falling 0.78%. NIO and Alibaba (BABA) dropped over 3%. Sunny Optical Technology, MINIMAX, and Lenovo Group fell more than 2%.
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