Chinese tech shares jump, Hong Kong falls as Fed flags inflation concerns

** Chinese chip designer Cambricon Technologies jumped 17.3% ‌after it said its first-quarter net profit soared 185% year-on-year. ** China's factory activity expanded for a second straight month in April on firmer output and stockpiling activity, an official survey showed, suggesting that growth momentum held despite external ⁠shocks ​stemming from the Middle ⁠East war.

Chinese tech shares jumped on Thursday, tracking ​gains in regional peers, while Hong Kong ​stocks fell after the Federal ‌Reserve flagged ​rising inflation concerns despite keeping interest rates on hold. ** At the midday break, the benchmark Shanghai Composite index inched up by ‌0.09%, while the blue-chip CSI300 Index lost 0.01%.

** Tech shares outperformed the broader market, with China’s tech-focused STAR 50 index jumping 4.71% in morning trade, as artificial intelligence-related stocks advanced across Asia, buoyed ‌by a raft of generally upbeat earnings reports. ** Chinese chip designer Cambricon Technologies jumped 17.3% ‌after it said its first-quarter net profit soared 185% year-on-year.

** China's factory activity expanded for a second straight month in April on firmer output and stockpiling activity, an official survey showed, suggesting that growth momentum held despite external ⁠shocks ​stemming from the Middle ⁠East war. ** "Price pressures stayed firmly in expansionary territory, suggesting China's reflation is continuing," said Lynn Song, chief economist for ⁠Greater China at ING.

** In Hong Kong, the benchmark Hang Seng Index lost 1.23%. ** Fed Chair ​Jerome Powell closed out eight years as head of the U.S. central bank with interest ⁠rates on hold, rising concerns about inflation, and an announcement that he would stay on as a Fed governor ⁠for ​now to defend the agency's independence from Trump administration "battering."

** Developments around the Middle East remained key market focus. U.S. President Donald Trump discussed how to mitigate the impact of ⁠a possible months-long U.S. blockade of Iran's ports with oil companies, a White House official said ⁠on Wednesday. ** Mainland ⁠China's financial markets will be closed for the Labor Day holiday from Friday, and trading will resume next Wednesday. Hong Kong markets will only ‌be closed ‌on Friday for the holiday.