Asia report: Chipmakers jump but HSBC tumbles in Hong Kong

(Sharecast News) - Surging chipmakers helped indices in Tokyo and Seoul finish firmly higher on Tuesday, though disappointing results from HSBC and caution about the economic outlook weighed on markets in Hong Kong and mainland China.

The Nikkei 225 jumped 1.7% and the KOSPI rose 3.1% as sentiment towards the heavyweight semiconductor and AI sectors improved following overnight gains on Wall Street.

Japanese semiconductor testing specialist Advantest, chip substrate manufacturer Ibiden and silicon wafer producer Sumco performed well in Tokyo, along with tech investor SoftBank and chip equipment maker Lasertec.

In Seoul, electronics manufacturers led the advance, including MCNEX, Dreamtech and Korea Circuit.

Hong Kong's Hang Seng fell 0.7%, weighed down by a near-6% slump in blue chip bank HSBC following the publication of its third-quarter results during the midday trading break. Pre-tax profit rose to $9.63bn, with revenue 5% higher at $18.62bn, mainly reflecting growth in banking net interest income, but both figures were just slightly below forecasts.

"The results extend recent share price losses for the bank, which has been hit recently by Beijing's increased scrutiny on Chinese wealth going overseas. That is a problem for HSBC given a key part of its current strategy is doubling down on its Asian focus," said Russ Mould, investment director at AJ Bell.

"HSBC is under pressure to bring costs down and while there is clear evidence of progress in the quarterly results, the market is likely to keep management's feet to the fire on this score."

Mainland China's Shanghai Composite also fell 1.3% as sentiment remains dampened by macro concerns, with analysts citing persistent worries about weak domestic demand and the country's struggling property sector, following recent figures showing sluggish retail sales and falling investment.

Chinese property stocks Longfor Group, China Resources Land and China Overseas Land & Investment all finished firmly in the red.