Chinese shares decline amid a selloff in technology stock following the recent release of strong U.S. jobs data.
The Shanghai Composite Index, the main gauge of Chinese stocks, fell 1.7% to 3,959.34. The Shenzhen Component Index plunged 3.2% to 14,821.19.
Fears of a rate hike by the U.S. Federal Reserve after strong U.S. jobs data triggered a selloff in technology stocks. According to CME FedWatch, markets are pricing in a 76% chance as of June 8 that the Fed will raise rates in December, up from 53.6% chance a week ago.
The SSE Star 50 Index (SHA:000688) and the SZSE Technology Index (SHE:399339), which track the performance of the 50 largest and most liquid technology and innovation-focused companies listed on their respective bourses, were both down about 4%.
"Such a sharp decline is quite unexpected ... but it's more likely a short-term adjustment after such longtime discussions over tech bubbles," City News Service cited Deng Yichao, an analyst with Chinalin Securities, as saying.
In company news, GEM (SHE:002340) signed an agreement with Ningbo Eastern Institute of Technology to jointly establish a solid-state battery cathode material joint laboratory. Shares of the waste resource comprehensive utilization company closed 5% lower Monday.