Alibaba shares slipped deeply, Asian stocks rose on US election day
Shares of Alibaba E-commerce Group “evaporate” 7.54% on November 4 trading day in Hong Kong after China announced a draft new regulation on online micro-lending.
|China’s Shanghai Composite Index still edged up 0.19% on November 4th. Photo: AFP|
The Central Bank of China and some of the country’s regulators today released draft new regulations for online micro-lending. These new rules are expected to affect the operations of fintech giant Ant Group (China) – an affiliate company in which Alibaba holds a 35% stake.
Ant Group earlier planned to conduct an initial public offering (IPO) with the largest value in the world tomorrow on November 5. This fintech group plans to raise up to $ 34.5 billion from the double listing on both the Shanghai and Hong Kong stock exchanges.
However, Ant Group’s IPO was postponed amid fears that the new Chinese policy would affect the group’s operations.
On the Hong Kong market, the Hang Seng today closed slightly slipped 0.21% to 24,886.14 points. On the contrary, most of the major stock indexes in Asia – Pacific recorded the green color on November 4th.
Mainland China stocks prospered today after the news that China’s service sector was on the rise. The Shanghai Composite Index edged up 0.19% to reach 3,277.44 points, while the Shenzhen Component Index rose 0.585% to 13,659.50 points.
The results of the private survey in the Chinese service sector published the same day showed that the Caixin / Markit Purchasing Managers’ Index (PMI) in the service sector reached 56.8 points. The PMI index above 50 shows that the sector / sector under survey achieved growth.
In Japan, the Nikkei 225 increased by 1.72% and closed at 23,695.23 points while Topix rose 1.2% to close the trading day with 1,627.25 points. Kospi of Korea today closed with an increase of 0.6% to 2,357.32 points.
Australian stocks today slipped slightly to 6,062.10 points after the country’s retail industry declined. Specifically, Australia’s retail sales in September decreased by 1.1%, according to data released by the Australian Bureau of Statistics on November 4. After information about retail sales in September decreased, the Australian dollar depreciated and converted 1 AUD / 0.7087 USD, compared to 1 AUD / 0.7221 USD.
In general, MSCI index in Asia – Pacific (except Japan) moved sideways.
Asian-Pacific investors today focused on the choking confrontation between the Republican candidate – incumbent President Donald Trump and representative of the Democratic Party – former Vice President Joe Biden – in November 3 official election day (US time). The US election results as of this afternoon (Singapore time) still do not clearly distinguish between Joe Biden and Donald Trump.
The greenback is stronger today. The US dollar index against other major currencies rose from 93,092 to 93,884, while the Japanese Yen depreciated and converted 104.94 JPY / USD, compared with 104.35 JPY / USD set earlier.
Oil prices on the Asian market increased this afternoon. Brent crude oil futures price inched up 0.55% and traded 39.93 USD / barrel, while the US crude futures price rose 0.42% to 37.82 USD / barrel.