China, HK stocks up, led by consumer and healthcare shares

China and Hong Kong stocks rose on Monday, led by consumer and healthcare shares, as investors rotated out of some artificial intelligence supply-chain names and into more traditional sectors.

** China's blue-chip CSI300 Index SZSE:399300 edged up 0.1% by the lunch break, while the Shanghai Composite Index SSE:000001 gained 0.2%. Hong Kong benchmark Hang Seng HSI:HSI was up 2.1%.

** The rotation aligns with global markets where investors expanded their positions beyond AI as they took profits from a sharp rally in memory chips this year.

** Onshore consumer staple shares SSE:000932 rallied 3.4%, while the CSI300 Healthcare Index (.CSI000913) surged 6%.

** The CSI 5G Communication Index SSE:931079 which contains manufacturers on the chip supply chain and was up 70% this year, fell 4.1%, while the AI Index SSE:930713 eased 0.6%.

** The tech-focused STAR 50 Index SSE:000688, however, was still up 1.6%, led by semiconductor equipment shares, ahead of the closely watched market debut of China's leading memory-chip maker CXMT.

** APAC equity futures were steady to slightly higher after reports that the United States and Iran had stepped back from further escalation, though continued unwinding of technology stocks is expected to weigh on major Asian markets.

** Tech giants listed in Hong Kong HSI:HSTECH, which had underperformed onshore tech names due to lack of hardware stocks, rebounded from their lowest points since Jan. 2025, up 3.7%.

** Shares related to China's low-altitude airspace broadly fell on concerns that Beijing's small aircraft crash may trigger tighter control of the space. CITIC Offshore Helicopter shares SZSE:000099 fell nearly 4%.

** Shares of Shanghai MicroPort MedBot HKEX:2252 jumped nearly 9% on breakthrough in core product installation.