Gains in Chinese tech stocks have waned

Asia-Pacific stocks were mixed at the end of the afternoon session on August 25, while Wall Street last night saw the S&P 500 and Nasdaq Composite hit new highs.

Alibaba shares listed in Hong Kong fell 1% on August 25. Photo: AFP

Hong Kong’s Hang Seng Index this afternoon lost its strong momentum in the previous two trading days and slipped 0.13% to 25,693.95 points.

The rise of Chinese technology stocks listed in Hong Kong waned at the end of the afternoon session. In particular, shares of internet technology group Tencent only inched 0.55% after gaining 3% yesterday. Shares of food delivery “empire” Meituan increased “modest” 2.34% compared to an initial increase of 13.51% yesterday. shares closed up 5% this afternoon, while Alibaba shares reversed from the morning session and dropped 1% by the end of the day.

Mainland China stock market remained “in green” today as the Shanghai Composite index rose 0.74% to 3,540.38 points, while the Shenzhen Component index inched up 0.23% to 14,697.50 points.

A senior official of the Cybersecurity Administration of China said on August 24 that Chinese companies that want to list shares publicly, including those with plans to list overseas, must meet the following requirements: meet two main requirements, including: compliance with national legislation; ensure the security of national networks, critical information infrastructure, and personal data.

These comments come after concerns that the policy uncertainty this summer has prompted many Chinese companies to postpone their plans to list in the US. Before that, the listing activities of Chinese enterprises abroad flourished, especially in the months of 2021.

Indian stocks today saw the Sensex index hit a record high of 56,118 points in morning trading, according to Refinitiv Eikon data. After that, Sensex’s momentum waned and closed just 0.16% higher.

In other major markets, the Nikkei 225 in Japan traded almost flat, closing at 27,724.80 points, while the Topix index rose slightly to reach 1,935.66 points.

In South Korea, the Kospi index also edged up 0.27% to reach 3,146.81 points, while the S&P/ASX 200 index closed higher. 0.39% up 7,531.90 points.

Covid-19 fears continue to weigh on investor sentiment as the number of infections in Sydney today hit a new daily record, putting the health system under “severe pressure”, according to Reuters.

On Wall Street, optimism from the US Food and Drug Administration’s full approval of Pfizer’s Covid-19 vaccine continued to send the stock market up.

The Dow Jones Industrial Average last night rose 30.55 points to 35,366.26, while the S&P 500 index closed at a new record of 4,486.23 points after 0.1% increase. The tech-biased Nasdaq Composite also hit a record 15,019.80, thanks to a 0.5% gain.

After gaining 3% yesterday, August 24, oil prices in Asia hourly traded today turned to slide slightly. Brent crude oil futures were flat at $71.09 per barrel, while US crude futures fell 0.1% to $67.47.

On the contrary, the greenback inched up today. The US dollar index against other major currencies rose to 93.023, from above 92 previously recorded. The Japanese yen slipped slightly against yesterday to 109.80 JPY/USD, while the Australian dollar strengthened and changed hands for 1 AUD to eat at 0.7241 USD, from 1 AUD/0.722 USD yesterday.