Asia report: US-listed Chinese firms lead Monday's losses
Most markets in Asia closed weaker on Monday, with Chinese technology plays among the leading fallers, as investors looked ahead to the US Federal Reserve meeting later in the week.
In Japan, the Nikkei 225 was down 0.77% at 27,699.25, as the yen weakened 0.14% against the dollar to last trade at JPY 136.31.
Technology conglomerate SoftBank Group managed gains of 0.42%, while automation specialist Fanuc lost 3.09% and fashion firm Fast Retailing slipped 0.54%.
The broader Topix index was off 0.65% by the end of trading in Tokyo, closing at 1,943.21.
On the mainland, the Shanghai Composite was 0.6% weaker at 3,250.39, and the technology-heavy Shenzhen Component was 0.83% lower at 12,291.59.
South Korea’s Kospi went against the regional trend, closing 0.44% firmer at 2,403.69, while the Hang Seng Index in Hong Kong slipped 0.22% to 02,562.94.
The Hang Seng Tech Index was 1.38% lower, after reports emerged over the weekend that regulators in Beijing were planning to place US-listed Chinese firms into three categories.
According to the Financial Times, companies would be categorised depending on how sensitive the data they held was deemed, with those holding “secretive” data being forced to delist.
The China Securities Regulatory Commission, however, told CNBC that it was not planning a three-category system to assist Chinese firms in avoiding forced delisting stateside.
US-listed Chinese tech stocks were among the biggest losers in the special administrative region, with Alibaba Group down 2.45%, Nio tumbling 6.42%, and Xpeng 6.3% weaker.
The blue-chip technology stocks failed to spark in Seoul too, with Samsung Electronics 0.33% colder and SK Hynix closing flat.
“The late slump in the Nasdaq during Friday’s US session has weighed on Asian stocks overnight and European futures,” said analysts at RaboResearch of the global situation on Monday morning.
“An exception has been the beleaguered Chinese property sector which has found support from a report that officials are planning a fund to support struggling developers.
“Recession fears have meant that oil is under pressure with Brent trading close to the low of the past few days.”
Oil prices were higher at the end of the Asian day, however, with Brent crude futures last up 1.49% on ICE at $104.74 per barrel, and West Texas Intermediate 1.35% firmer at $95.98 on NYMEX.
In Australia, the S&P/ASX 200 lost 0.02%, or just 1.6 points, to 6,789.90, while across the Tasman Sea, New Zealand’s S&P/NZX 50 was down 0.57% at 11,198.68.
The down under dollars were both stronger on the greenback, with the Aussie last ahead 0.35% at AUD 1.4382, and the Kiwi advancing 0.05% to NZD 1.5952.
Reporting by Josh White at Sharecast.com.