Asian Market Volatility: Tech Leads China Resilience Amid Trade Tensions

China and Hong Kong stocks experience downturn amid worsening sentiment in Asia, paralleling Wall Street's sharp declines. However, optimism over AI-driven growth offers some respite. As the tech sector undergoes shifts, uncertainties over U.S. trade policies continue to present potential risks to China's economic growth.

China and Hong Kong stocks witnessed a downturn on Tuesday, reflecting a souring sentiment in Asia which paralleled Wall Street's substantial declines. Despite this, the day saw contained losses, buoyed by an optimistic outlook regarding AI's projected economic impact.

Key indices in China, such as the CSI 300 and Shanghai Composite Index, reported a 0.5% drop by the lunch break, recuperating some initial losses. In Hong Kong, the Hang Seng Index closed the morning session with a 1% decrease after an early drop of 2.1%.

Amid these developments, U.S. stocks had plunged as the S&P 500 suffered its largest one-day drop in nearly three months, casting a shadow of recession fears fueled by extensive trade warfare. Notwithstanding, sectorial optimism remains for China's tech-driven bull market.

(With inputs from agencies.)