· Hong Kong shares lead losses in Asia-Pacific as Chinese tech stocks drop amid regulatory fears
Shares in Asia-Pacific mostly declined on Thursday, as Chinese tech stocks in Hong Kong came under pressure after regulatory fears resurfaced.
In Thursday afternoon trade in Hong Kong, shares of Tencent dropped 4.19% while Alibaba declined 3.79% and Meituan plunged 6.57%. The Hang Seng Tech index declined 3.75%.
Beijing recently announced a stepping up in oversight on Chinese listings in the U.S., many of whom are tech companies. That came after a recent crackdown on ride-hailing giant Didi and other tech firms, which once again raised concerns over the regulatory outlook.
The broader Hang Seng index in Hong Kong led losses among the region’s major markets as it slipped 2.83%, as of its final hour of trading.
Mainland Chinese shares also closed lower, with the Shanghai composite falling 0.79% to 3,525.50 while the Shenzhen component declined 0.382% to 14,882.90.
Over in Australia, the S&P/ASX 200 advanced 0.2% to close at 7,341.40.
MSCI’s broadest index of Asia-Pacific shares outside Japan fell 1.55%.
· Japanese shares fall as Tokyo declares state of emergency ahead of Olympics
Japanese shares fell on Thursday, as the country’s plan to reintroduce a state of emergency to contain a resurgence of COVID-19 infections stoked worries about an economic slowdown.
The Nikkei share average slipped 0.88% to 28,118.03, its lowest close in more than two weeks, while the broader Topix was down 0.90% at 1,920.32.
Japan is set to declare its fourth state of emergency for Tokyo that will run through its hosting of the Olympics, a key minister said.
· Hong Kong stocks hit 6-month low as tech tumbles on persistent regulatory fears
· Malaysian shares fall 1% and ringgit eases on renewed political turmoil
Malaysian shares fell 1% and the ringgit eased after the biggest political party of the country's ruling coalition called for Prime Minister Muhyiddin Yassin to resign at a time when the country remains in a COVID-19 lockdown.
· European markets retreat amid cautious global sentiment; TeamViewer down 13%
European stocks were lower Thursday morning amid a more cautious turn in global sentiment.
The pan-European Stoxx 600 fell 1.2% in early trade, with basic resources dropping 2.7% to lead losses as all sectors and major bourses slid into negative territory.
The lower open for Europe reflects cautious sentiment in Asia-Pacific and the U.S., despite the S&P 500 and Nasdaq Composite closing at record highs Wednesday. Overnight, however, futures contracts tied to the major U.S. stock indexes fell in early morning trading Thursday.
· Stock futures drop after S&P 500, Nasdaq notch fresh records
Futures contracts tied to the major U.S. stock indexes fell in early morning trading Thursday after both the S&P 500 and Nasdaq Composite closed at records.
Dow futures dropped 262 points. Contracts tied to the S&P 500 and Nasdaq 100 were both in negative territory.
The moves in futures came after a positive regular session for U.S. markets on Wednesday.
· U.S. IPO market a danger zone for Chinese firms after Beijing crackdown
China's stepped-up scrutiny of overseas listings by its companies and a clampdown on ride-hailing giant Didi Global Inc (DIDI.N) soon after its debut in New York have darkened the outlook for listings in the United States, bankers and investors said.
· Falling U.S. bond yields may signal death knell for 'reflation' stock trade
Stock investors are watching the dramatic moves in the Treasury market for clues on the fate of one of this year’s most successful plays - the so-called reflation trade that helped power shares of economically sensitive companies higher after nearly a decade of underperformance.
Investors piled in to shares of energy producers, banks and other companies expected to benefit from a powerful economic rebound earlier this year while betting that Treasury yields, which move inversely to prices, would rise.
That trade appears to be tottering now, as worries over slowing growth send yields tumbling to their lowest level in more than four months. While stock markets appear placid, with the S&P 500 hovering near a record high, a rotation beneath the surface has accelerated in recent weeks, as investors move out of economically sensitive names and back in to the big technology and growth stocks that led markets higher for most of the last decade.
Reference: CNBC, Reuters
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