HSI opens down 379 points as tech and chip stocks slide

The Hang Seng Index opened down 379 points, or 1.5%, at 24,582 after stronger-than-expected US jobs data reinforced expectations that the Federal Reserve will keep rates higher for longer.

The Hang Seng Tech Index slid 2.43% to 4,769, with Baidu (9888.HK) opening nearly 5% lower. Tencent Holdings (0700.HK) fell 1.19%, while Meituan (3690.HK), Kuaishou (1024.HK) and Alibaba Group (9988.HK) each opened more than 3% lower. The Hang Seng China Enterprises Index dropped 1.66% to 8,296.

Semiconductor stocks led the declines. Semiconductor Manufacturing International Corp. (981.HK) opened 3.5% lower, while Hua Hong Semiconductor (1347.HK) slumped 6.19%. Leveraged chip exchange-traded funds XL2CSOPHYNIX (7709.HK) and XL2CSOPSMSN (7747.HK) opened 10.51% and 13.96% lower respectively. Among blue chips, Lenovo Group (992.HK) fell 5.15%, Sunny Optical Technology (2382.HK) dropped 4.94%, and CMOC Group (3993.HK) declined 5.42%.

The selloff followed US ADP employment data showing 122,000 jobs were added in May, above the 117,000 consensus estimate and the prior month's 109,000. The stronger labor market reading reduces the likelihood of near-term Fed rate cuts, a headwind for risk assets in Asia. The HSI extended its decline to more than 500 points within the first hour of trading, reaching 24,460 by 09:38 HKT. The Shanghai Composite Index also opened lower, tracking the regional selloff.

This article is for informational purposes only and does not constitute investment advice.