Asia report: Hang Seng leads declines as Alibaba shares plunge

Hong Kong stocks led declines in the Asia-Pacific region on Friday on the back of a sharp decline in Alibaba Group shares.

Alibaba’s stock performance was influenced by the company’s decision not to proceed with the full spinoff of its cloud group due to US chip export restrictions.

Patrick Munnelly at TickMill Group said stocks were mixed in the region, reflecting a choppy performance on Wall Street overnight as yields declined and market participants digested soft US data releases.

“The Nikkei 225 exhibited indecision amid a lack of fresh catalysts and balanced comments from Bank of Japan (BoJ) governor Kazuo Ueda.

“Meanwhile, the Hang Seng and Shanghai Composite faced pressure, with the Hong Kong benchmark dragged lower by significant losses in Alibaba after it scrapped its cloud business spinoff due to US chip restrictions.

“Additionally, energy names in the region were affected by the decline in oil prices.”

Markets in a mixed state as Hong Kong bourse plunges

Hong Kong’s Hang Seng Index closed down 2.12% at 17,454.19, with Alibaba Group off 9.96% by the end of the day.

Among the other leading decliners in the special administrative region were Alibaba Health Information Technology, down 6.33%, and Baidu, which lost 5.7%.

In contrast, Japanese markets showed resilience as the Nikkei 225 rose 0.48% to 33,585.20, and the Topix index gained 0.95% to close at 2,391.05.

Leading the risers on Tokyo’s benchmark was Panasonic, up 5.5%, followed by Kajima, with a 3.63% increase, and Japan Post, which was ahead by 3.58%.

Chinese markets displayed mixed results, with the Shanghai Composite increasing by 0.11% to close at 3,054.37, while the Shenzhen Component rose 0.25% to 9,979.69.

Chongqing Fenghwa Group added 10.04%, and Daheng New Epoch Technology rose 10.02% to lead the top performers in Shanghai.

South Korea’s Kospi index experienced a modest decline of 0.74%, closing at 2,469.85, driven by a weaker performance from Hybe, which lost 7.4%, and Netmarble Games, sliding 6.16%.

Australia’s S&P/ASX 200 index saw a slight decline of 0.13%, closing at 7,049.40, led lower by Contact Energy and Car Group, down 4.5% and 4.36%, respectively.

Across the Tasman Sea, New Zealand’s S&P/NZX 50 index decreased by 0.48%, closing at 11,176.97.

Tourism Holdings and Serko led Wellington’s decline, falling by 2.86% and 2.72%, respectively.

In currency markets, the dollar was last down 0.72% on the yen, trading at JPY 149.64, while it decreased 0.16% against its Aussie counterpart to AUD 1.5431.

Meanwhile, the greenback edged up 0.01% on the Kiwi to change hands at NZD 1.6749.

On the oil front, Brent crude futures were last up 0.89% on ICE at $78.11 per barrel, while the NYMEX quote for West Texas Intermediate rose 0.91% to $73.56.

Decline in non-oil exports slows in Singapore

In economic news, according to government data, Singapore’s non-oil domestic exports (NODX) saw a persistent decline in October, although at a notably slower rate compared to previous months.

The city-state’s NODX decreased 3.4% last month, marking the 13th consecutive month of decline.

It was, however, the most minor contraction since October 2022.

The subdued performance was attributed to a deceleration in electronic and non-electronic goods exports, particularly to key markets such as Taiwan, the United States and South Korea.

Despite the ongoing decline, last month’s figures indicate a modest improvement compared to the more substantial 13.2% contraction observed in September.

Reporting by Josh White for Sharecast.com.