Global Market: China stocks fall as tech selloff deepens despite Fed rate pause

Robinson Worldwide127.60(-11.14%)Lennox Intl332.64(-10.59%)Losers»Read more: Global Market: China’s yuan hits four-year high against dollar after Fed holds ratesThe CSI 5G Communications Index plunged 6.1% during morning trading, highlighting the pressure on technology-related stocks.Robot maker Yushu Technology, also known as Unitree, slumped 4.3% after its third-quarter net profit declined despite revenue rising 70% from a year earlier.

The results marked the company's first earnings report since listing, Reuters reported.Live EventsJames Wang, head of China strategy at UBS Investment Bank Research, said valuations of AI hardware companies had approached historical lows, reflecting expectations of a significant slowdown in earnings-per-share growth. He also cautioned that investor sentiment toward artificial intelligence remained fragile, although the risk-reward balance was becoming more attractive and interest could return toward the end of the year as investors repositioned their portfolios for the new year, according to Reuters.Read more: Global Market: South Korean shares fall 2% as Samsung Electronics slides after earningsAcross Asia, equity markets gave up earlier gains as artificial intelligence-related earnings announcements triggered mixed reactions, raising expectations ahead of results from Amazon and Intel later on Thursday.

Investors were assessing whether strong AI-related spending could continue to support technology companies' earnings growth.The Federal Reserve kept interest rates unchanged on Wednesday, as expected, delaying any changes to borrowing costs while awaiting further inflation data. According to Reuters, the decision came ahead of next week's US midterm elections, with the central bank indicating that inflation remained elevated.In Hong Kong, the benchmark Hang Seng Index edged up 0.1%, while the city's technology shares fell 2%, Reuters reported.The contrasting performance highlighted continued pressure on technology stocks as investors reassessed AI-related valuations and growth expectations, even as the broader regional market outlook remained sensitive to corporate earnings and US monetary policy.(Disclaimer: This article is based on inputs from agencies. These do not represent the views of The Economic Times)(You can now subscribe to our ETMarkets WhatsApp channel)