Hong Kong stocks opened in the red on Tuesday after the Nasdaq index closed at its lowest level since July 2020 and a semi-conductor stock rout spread across Asian markets like Taiwan and South Korea which opened for trading after the holidays.
|Alibaba Group Holding Ltd. BABA||-3.24%|
|JD.com Inc JD||-5.1%|
|Baidu Inc BIDU||-5.17%|
|Tencent Holdings Ltd. TCEHY||-3.11%|
|Nio Inc NIO||-4.03%|
|XPeng Inc XPEV||0.93%|
|Li Auto Inc LI||0.96%|
ANZ Research said in a note that equities continued to sell off as the impact of tighter monetary policy spooks investors. “Global political and economic uncertainty remains elevated, which is supportive of the dollar,” it said.
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The benchmark Hang Seng traded 1.7% lower in morning trade. Shares of Meituan, Baidu and Nio tanked by over 4%, while Alibaba shares fell over 3%.
Macro News: China’s Foreign Ministry said on Monday Taiwan is an inseparable part of its territory, and the root cause of the problems in the Strait is the Taiwanese government’s seeking of independence, reported Reuters.
China called for “patience” with its tough pandemic policies and warned against any “war-weariness” at a time when local cases surged to their highest since August, reported Reuters.
The People’s Bank of China added a net 108.2 billion yuan ($15.2 billion) in Pledged Supplementary Lending, or PSL, in September for the China Development Bank, Agricultural Development Bank of China ACGBY and Export-Import Bank of China.
Company News: Alibaba Cloud has opened a new campus in its home city of Hangzhou, covering 2.1 million sq ft, reported the South China Morning Post.
Contemporary Amperex Technology Co Ltd. anticipates its net income to rise to as much as 9.8 billion yuan ($1.4 billion) in the third quarter, reported Bloomberg.
Top Gainers and Losers: Meituan and Longfor Group Holdings Limited were the top losers among Hang Seng constituents, having shed over 7% and 5%, respectively. Techtronic Industries Company Limited and Henderson Land Development Company Limited were the top gainers having risen over 3% and 1%, respectively.
Global News: U.S. futures traded lower on Tuesday morning Asia session. The Dow Jones futures were down 0.5%, while Nasdaq futures lost 0.45% and S&P 500 futures were down 0.51%.
Elsewhere in Asia, Australia’s ASX 200 was up 0.06%. Japan’s Nikkei 225 lost 2.5%, while China’s Shanghai Composite index was up 0.03%. South Korea’s Kospi was down 2.3%.
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