China EV stocks slump on weak January deliveries

Investing.com-- Asian stock markets fell on Monday, led by sharp declines in South Korean and Hong Kong shares, as an AI-driven sell-off gathered pace in line with weak Wall Street sentiment, while investors digested mixed signals from China’s latest factory activity data.

The pullback tracked losses in Wall Street futures during Asian hours, with tech-heavy Nasdaq futures slipping 1% amid concerns that enthusiasm around artificial intelligence may have run ahead of fundamentals.

KOPI slumps over 5%, Hang Seng drops 2.5%

South Korea’s KOSPI slumped more than 5%, weighed down by losses in heavyweight chipmakers -- Samsung Electronics (KS:005930) and SK Hynix (KS:000660) dropping between 4.8% and 6.5%.

Hong Kong’s Hang Seng index declined 2.5%, with the Hang Seng TECH sub-index losing more than 3%.

Elsewhere in the region, markets were broadly weaker, reflecting a cautious start to the week after last week’s declines in U.S. equities.

Sentiment toward AI-linked shares has deteriorated following recent U.S. earnings, including results from Microsoft Corporation (NASDAQ:MSFT), which highlighted rising costs tied to heavy AI investment and raised questions about near-term returns.

The outlook for the sector remains in focus this week, with earnings due from Amazon and Alphabet, both seen as bellwethers for cloud computing and AI-related demand.

Adding to the cautious mood, U.S. President Donald Trump nominated Kevin Warsh to be the next chair of the Federal Reserve. Warsh, a former Fed governor, has a long track record of emphasising inflation risks and has historically been viewed as relatively hawkish on monetary policy.

Traders weigh mixed China PMI figures

Data released on Saturday showed that China’s official manufacturing PMI slipped further below the 50 mark in January, pointing to a contraction in factory activity and highlighting persistent weakness in domestic demand.

In contrast, the RatingDog private manufacturing PMI, which focuses more on smaller, private firms, edged back into expansion territory, offering a more optimistic view of export-oriented sectors.

In mainland China, the blue-chip Shanghai Shenzhen CSI 300 fell 1.1%, while the Shanghai Composite declined 1.3%, amid a broader regional downturn.

Japan's Nikkei 225 dropped 1%, while the broader TOPIX index edged 0.3% lower.

Australia's S&P/ASX 200 slipped 1.3%, while Singapore's Straits Times Index eased 0.3%.

Futures for India's Nifty 50 traded flat at open.

Investing.com-- Shares of Australia’s GrainCorp (ASX:GNC) slid to four-year lows on Monday after the company flagged a weaker earnings outlook for fiscal 2026, citing low global grain prices and pressure on export margins.

The grain handling company said it expects underlying EBITDA of A$200 million to A$240 million in FY26, down from A$308 million a year earlier, while underlying net profit after tax is forecast at A$20 million to A$50 million, compared with A$87 million in FY25.

Sydney-listed shares of the company slumped as much as 19.3% to A$5.81, their lowest since November 2021.

GrainCorp said global grain markets remain weighed down by cyclical oversupply and subdued prices, even as Australia’s east coast winter harvest was strong. Slower grower selling and multi-year low export margins are expected to weigh on earnings this year.

The company anticipates receivals of 11.0 million to 12.0 million tonnes in FY26, versus 13.3 million tonnes last year, with exports seen at 5.5 million to 6.5 million tonnes.

GrainCorp said it is accelerating cost management initiatives while maintaining service levels.

Investing.com -- China’s manufacturing activity contracted in January as weak domestic demand weighed on production, according to official data released Saturday.

The official purchasing managers’ index (PMI) fell to 49.3 in January from 50.1 in December, dropping below the 50-point mark that separates growth from contraction. The reading missed analysts’ forecast of 50.1.

Sub-indexes measuring new orders and new export orders also declined. New orders dropped to 49.2 from 50.8 in December, while new export orders fell to 47.8 from 49.0.

The non-manufacturing PMI, which covers services and construction sectors, decreased to 49.4 from 50.2 in December, reaching its lowest level since December 2022.

China’s economy met the government’s official growth target of 5% last year, supported by strong exports that withstood pressure from U.S. President Donald Trump’s tariff measures.

Retail sales continued to weaken in the final quarter of 2025, contributing to fourth-quarter GDP growth falling to a three-year low.

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