Published on 06/04/2026 at 04:41 am EDT
(Reuters) - China and Hong Kong stocks fell with Asian markets on Thursday, as Middle East tensions intensified, but Chinese chipmakers jumped on bets of domestic breakthroughs.
** In China, the large-cap CSI300 Index fell 0.7% while the Shanghai Composite Index lost 0.6%.
** Hong Kong's Hang Seng Index declined 1.5%.
** Israel and Lebanon agreed to implement a ceasefire to end hostilities, boosting hopes for a broader deal to end the U.S.-Israeli war on Iran.
** However, hostility continued to simmer in the region, with Tehran striking Kuwait, damaging its airport and injuring dozens, and the U.S. military carrying out strikes near the Strait of Hormuz.
** The uncertainty drove investors into risk-off mode, with Asian markets falling 2%, following overnight weakness on Wall Street.
** Chinese chipmakers stood out amid hopes domestic players will sidestep Washington's sanctions and export controls.
** The optimism was fed by news that DeepSeek, China's best-known AI startup, is set to raise about 50 billion yuan ($7.4 billion) in its first funding round from investors including Tencent Holdings and CATL . ** Earlier this month, China's AI champion Huawei said it can make industry-leading semiconductors within five years.
** "The hopes for China's AI expansion are increasingly pinned to progress in domestic chipmaking," said Tilly Zhang, analyst at Gavekal Dragonomics.
** The

STAR

Semiconductor Material & Equipment Index jumped 5%. The CSI Semiconductor Industry Index gained 2.7%.
** Meanwhile, China coal stocks rose sharply on bets that coal miners will benefit from a prolonged oil shock.
** Most sectors fell, with metal and materials stocks leading the declines.
(Reporting by Shanghai Newsroom; Editing by Harikrishnan Nair)

Sumber : Reuters