Asia report: Markets mixed as China's regulatory rampage 'peaks'
Equity markets closed in a mixed state across the Asia-Pacific region on Thursday, amid fresh regulatory fears for the technology sector in China, while Australia recorded a higher-than-anticipated trade surplus for July.
In Japan, the Nikkei 225 was up 0.33% at 28,543.51, as the yen strengthened 0.01% against the dollar to last trade at JPY 110.00.
It was a mixed picture for the benchmark’s major components, with robotics specialist Fanuc up 0.92%, while Uniqlo owner Fast Retailing lost 0.2% and technology giant SoftBank Group was off 0.73%.
The broader Topix index advanced 0.14% by the end of trading in Tokyo, closing at 1,983.57.
On the mainland, the Shanghai Composite was up 0.84% at 3,597.04, as the smaller, technology-centric Shenzhen Composite rose 0.41% to 2,427.77.
South Korea’s Kospi was down 0.97% at 3,175.85, while the Hang Seng Index in Hong Kong managed gains of 0.24% to 26,090.43.
Regulatory fears resurfaced for the Chinese technology sector during the day, after it emerged that 11 cab-hailing app operators were summoned by the Ministry of Transport in Beijing.
The ministry interviewed the companies, which included Didi Chuxing and Meituan, and ordered them to fix allegedly non-compliant practices.
Tech plays still managed a largely positive finish in Hong Kong, however, with Alibaba up 3.51%, Meituan rising 0.08% and Tencent 1.56% firmer.
The blue-chip technology stocks were in the red in Seoul, meanwhile, with Samsung Electronics down 1.04% and SK Hynix 1.39% lower.
“Stock markets in Hong Kong are on the rise as investors have started to invest in Chinese tech companies,” noted AvaTrade chief market analyst Naeem Aslam.
“Stock traders believe that Beijing’s imposition of regulatory restrictions has peaked.
“Furthermore, with the economic recovery slowing down, investors are wondering whether Beijing will raise its monetary support to help small-scale businesses grow.”
Oil prices were higher as the region went to bed, with Brent crude last up 0.45% at $71.91 per barrel, and West Texas Intermediate rtising 0.42% to $68.88.
In Australia, the S&P/ASX 200 slipped 0.55% to 7,485.70, as the country recorded a trade surplus of AUD 12.12bn for July.
That official total from the Australian Bureau of Statistics was a good amount above the AUD 10.2bn expected by analysts polled by Reuters.
Across the Tasman Sea, New Zealand’s S&P/NZX 50 rose 0.28% to 13,280.47 as the curtains drew on earnings season in Wellington.
Dairy products supplier Synlait Milk led the bourse higher, rising 3.1% as it continued to recover from the three-month low it reached last week.
The down under dollars were both stronger on the greenback, with the Aussie last ahead 0.28% at AUD 1.3536, and the Kiwi advancing 0.29% to NZD 1.4101.
“The Antipodeans are leading today's session after a strong trade reading from Australia overnight,” said analysts at TD Securities on the currency situation.