Asia report: Chinese tech plays lead markets higher
Stocks were once again in positive territory in Asia on Tuesday, with Hong Kong’s main board recovering further from its trough last week, as investors digested the latest developments in the China-US public listing regulation saga.
In Japan, the Nikkei 225 was up 0.87% at 27,732.10, as the yen weakened 0.01% against the dollar to last trade at JPY 109.71.
Of the major components on the benchmark index, robotics specialist Fanuc was up 1.58%, Uniqlo owner Fast Retailing rose 0.81%, and technology giant SoftBank Group was ahead 1.53%.
The broader Topix index advanced 1% by the end of trading in Tokyo, closing at 1,934.20.
On the mainland, the Shanghai Composite was 1.07% firmer at 3,514.47, and the smaller, technology-centric Shenzhen Composite managed gains of 0.77% to 2,463.85.
South Korea’s Kospi was ahead 1.56% to 3,138.30, while the Hang Seng Index in Hong Kong jumped 2.46% to 25,727.92.
Technology plays were the leaders in the special administrative region, with Alibaba up 9.47%, Meituan rising 13.51%, and Tencent 8.81% firmer.
It came after reports overnight that the US Securities and Exchange Commission was starting to issue its new disclosure requirements for Chinese companies wanting to list on Wall Street.
Reuters said the move was part of a regulatory effort stateside to ensure investors there have knowledge of the risks of putting money into such a listing.
The blue-chip technology stocks were on the front foot in Seoul as well, with Samsung Electronics jumping 3.14%, and SK Hynix 1.94% higher.
“Concerns about the spread of the Delta variant seem to wax and wane as often as the weather,” said AJ Bell financial analyst Danni Hewson.
“Also helping sentiment was a steady performance overnight for Asian stocks and a strong showing on Wall Street.
“All eyes remain on the Jackson Hole meeting at the end of the week with the markets likely ferreting around for clues on what central bankers will do next on financial stimulus and interest rates and, crucially, when.”
Oil prices were higher as the region went to bed, with Brent crude last up 1.34% at $69.67 per barrel, and West Texas Intermediate rising 1.19% to $66.42.
In Australia, the S&P/ASX 200 eked out 0.17% to close at 7,503.00, while across the Tasman Sea, New Zealand’s S&P/NZX 50 managed a rise of 0.06% to 13,071.86.
The down under dollars were stronger on the greenback, with the Aussie last ahead 0.29% at AUD 1.3831, and the Kiwi advancing 0.64% to NZD 1.4416.