Asian markets close mixed as chip shares lift China and Japan
Asian stock markets ended Monday on a mixed note, with technology and semiconductor shares driving strong gains in mainland China, Hong Kong and Japan. Australia and India closed lower, while South Korea’s market remained shut for a public holiday. Investors balanced encouraging corporate earnings against weaker economic data, elevated oil prices and continuing tensions in the Middle East.
Chinese technology shares lead gains
The Shanghai Composite climbed 1.41% to 3,982.65, while Hong Kong’s Hang Seng Index advanced 1.34% to 25,453.23. The technology-heavy segment of the Chinese market outperformed as investors responded positively to earnings from domestic semiconductor manufacturers.
China’s semiconductor index gained about 4%, while an index tracking artificial intelligence companies rose 1.5%. Memory-chip producer CXMT advanced 9%, and Shenzhen China Micro Semiconductor gained 15% after reporting that its first-half profit had nearly doubled.
The rally continued despite disappointing Chinese economic figures. Industrial production increased 4.5% year on year in July, below the forecast of 4.8%, while retail sales grew only 0.6%, compared with expectations of 1.5%. Fixed-asset investment contracted 6.7% during the first seven months of the year.
Japan ends with divided performance
Japan’s Nikkei 225 rose 0.74% to 69,220.25, extending its winning streak to five sessions. Semiconductor and other high-technology shares led the advance, with memory-chip manufacturer Kioxia Holdings gaining more than 15%.
However, the broader Topix index fell 0.31% to 4,184.11, showing that the strength was concentrated in a limited group of large companies.
Japan’s economy expanded by 0.3% during the second quarter and by an annualised 1.1%. Both figures missed market expectations as household consumption remained weak and business investment declined. The softer data added uncertainty over the timing of the Bank of Japan’s next interest-rate decision.
Australia and India finish lower
Australia’s S&P/ASX 200 declined 0.46% to 9,073.20. Retailers, banks and property-related companies led the losses. JB Hi-Fi fell more than 12%, while National Australia Bank dropped 4.62%. Gains among mining companies provided only limited support.
Indian equities also closed lower as rising crude prices increased concerns about inflation and import costs. The Nifty 50 lost 0.32% to finish at 24,287.65, marking its fifth consecutive decline. The Sensex fell 0.36% to 77,728.16.
Elsewhere, Singapore’s Straits Times Index gained 0.43% to 5,768.46, while Taiwan’s Taiex fell approximately 0.5% after technology shares reversed earlier gains.
Oil prices remain a central risk
Brent crude traded near $89 a barrel as the lack of progress towards ending the conflict involving the United States and Iran kept concerns over Middle Eastern supplies elevated. Higher energy prices continued to weigh particularly heavily on import-dependent Asian economies.
The session left the region divided between renewed enthusiasm for semiconductor and AI-related companies and broader concerns about weak consumption, higher energy costs and slowing economic momentum.
Newshub Editorial in Asia – 17 August 2026
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