Hong Kong tech stocks drag market down 2%; Asia markets drop

Chinese and Hong Kong flags flutter as screens display the Hang Seng Index outside the Exchange Square complex, home to the Hong Kong Stock Exchange, on January 21, 2021 in Hong Kong, China.

Zhang Wei | China News Service via Getty Images

Asia-Pacific stocks fell on Monday, with Hong Kong’s Hang Seng leading the losses as Chinese chip stocks listed in the city plunged after new US export rules

China’s largest chipmaker International Semiconductor Manufacturing Company fell 5.23%, while Hua Hong Semiconductor fell by more than 10% and Shanghai Fudan Microelectronics Company plunged as low as 24.6% during morning trading.

The largest Hang Seng Index was 2.78% lower, with the Hang Seng Tech index down 3.8%. HSI Truck Meituan fell 6.42%.

In mainland China, the Shanghai Composite fell 1.66% to 2,974.15 on the first day of trading after the Golden Week holiday, while the Shenzhen Component fell 2.38% to 10,522.12. The CSI 300 index, which tracks the biggest stocks listed on the continent, slipped 2.21% to 3,720.94.

The S&P/ASX 200 was 1.4% lower at 6,667.80. MSCI’s broadest Asia Pacific ex-Japan equity index traded down 1.65%. Markets in Japan, South Korea, Taiwan and Malaysia are closed for the holidays on Monday.

Later this week, the Bank of Korea will announce its decision on the benchmark interest rate, Singapore is expected to announce its GDP estimate for the third quarter and China will release inflation data.

Taiwan semiconductor manufacturing company and that of Japan Quick retail will report earnings and the US will release inflation data for September.

On Friday in the United States, major stock indexes fell more than 2% after data showed the unemployment rate fell in September, raising fears that the Federal Reserve will continue to hike rates aggressively.

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