The Hang Seng Index fell 0.4 per cent to 17,739.51 at 11.10am local time, retreating further from a five-week high. The Tech Index slipped 1.1 per cent as China’s top chip makers tumbled. The Shanghai Composite Index lost 0.5 per cent.

China’s biggest semiconductor producer SMIC fell 1 per cent to HK$20.50 while Hua Hong slid 2.8 per cent to HK$19.32. Baidu lost 2.1 per cent to HK$122. Alibaba Group dropped 0.5 per cent to HK$82.15 and Tencent slumped 1.5 per cent to HK$302.20, while Meituan slid 0.9 per cent to HK$113.60.

“Geopolitical risks are disrupting the recovery process in the short term,” Huatai Securities analyst Wang Yi said in a note to clients on Monday. The war in Israel has led to a sharp increase in risk aversion, he wrote.

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Protesters on both sides of Israel-Hamas conflict flood streets around the world

Protesters on both sides of Israel-Hamas conflict flood streets around the world

Elsewhere, China’s gross domestic product probably rose at an annual pace of 4.5 per cent last quarter, according to consensus from economists tracked by Bloomberg. That’s slower than the 6.3 per cent gain in the second quarter. Other forecasts showed industrial production, retail sales and employment likely stabilised.

Key Asian markets weakened. South Korea’s Kospi dropped 1.3 per cent and Australia’s S&P/ASX 200 lost 0.3 per cent, while Japan’s Nikkei 225 slipped 1.6 per cent.