Tech Troubles: Asian Markets Feel the Strain

China and Hong Kong markets experienced declines, particularly in tech and AI sectors, despite the resilience of banking and energy stocks. Major firms like Alibaba and Tencent witnessed significant losses. Meanwhile, tensions from U.S.-EU trade relations threaten global economic stability and may exacerbate financial uncertainties.

As tech and AI-related stocks faltered, shares in China and Hong Kong saw a downturn on Thursday. Despite this, banking and energy stocks managed to offset some of the broader losses.

The Shanghai Composite depreciated by 0.4% and the Hang Seng Index in Hong Kong dropped 0.7%. Notably, the CSI AI Index experienced its steepest single-day decline in two weeks, falling 2.2%.

Amid heightened U.S.-EU trade tensions, analysts warn the staying power of Chinese stocks could wane, as U.S. demand declines and tariffs increase. While the regional MSCI Asia ex-Japan index decreased, Japan's Nikkei index experienced gains.

(With inputs from agencies.)