Hong Kong’s Hang Seng index slips more than 2% as China tech stocks drop

Key Points

• Asia-Pacific stocks were mixed in Tuesday morning trade, with shares in Hong Kong leading losses regionally as the Hang Seng index fell more than 2%.
• The People’s Bank of China announced Monday it will increase financial support for industries, businesses and people affected by Covid-19.
• China on Monday reported mixed economic data, with retail sales in March coming in below expectations while its first-quarter GDP was higher than anticipated.

SINGAPORE — Shares in Asia-Pacific were mixed in Tuesday morning trade, as investors watched for market reaction to China’s central bank announcing financial support for Covid-hit sectors.

Hong Kong’s Hang Seng index led losses among the region’s major markets as it dropped around 2.5%, returning to trade following holidays on Friday and Monday.

Chinese tech stocks in the city tumbled after authorities in China announced Friday a ban on the livestreaming of unauthorized video games. In Tuesday morning trade, shares of Bilibili plunged 10.44% while NetEase shed 2.66%. Tencent also fell 2.83% while Alibaba dropped 3.77%. The Hang Seng Tech index traded 3% lower.

Mainland Chinese stocks also struggled for gains, with the Shanghai composite fractionally lower while the Shenzhen component dipped 0.107%.

On Monday, the People’s Bank of China announced it will increase financial support for industries, businesses and people affected by Covid-19.

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The announcement came after China reported mixed economic data, with retail sales in March coming in below expectations while first-quarter GDP was higher than anticipated. Mainland China has for weeks been battling its most severe Covid outbreak since the initial phase of the pandemic in 2020.

Elsewhere, the Nikkei 225 in Japan climbed 0.33% while the Topix index gained 0.53%. South Korea’s Kospi climbed 0.98%.

In Australia, the S&P/ASX 200 advanced 0.73%.

MSCI’s broadest index of Asia-Pacific shares outside Japan traded 0.25% lower.

Shares on Wall Street slipped overnight stateside. The Dow Jones Industrial Average declined 39.54 points, or 0.11%, to 34,411.69 while the S&P 500 was little changed at 4,391.69. The Nasdaq Composite shed 0.14% to 13,332.36.

TICKER	COMPANY	NAME	PRICE	CHANGE	%CHANGE
.N225	Nikkei 225 Index	*NIKKEI	26830.82	31.11	0.12
.HSI	Hang Seng Index	*HSI	20930.32	-587.76	-2.73
.AXJO	S&P/ASX 200	*ASX 200	7575.2	51.8	0.69
.SSEC	Shanghai	*SHANGHAI	3193.06	-2.46	-0.08
.KS11	KOSPI Index	*KOSPI	2716.48	23.27	0.86
.FTFCNBCA	CNBC 100 ASIA IDX	*CNBC 100	8748.36	-69.58	-0.79

Currencies and oil

The U.S. dollar index, which tracks the greenback against a basket of its peers, was at 100.845 as it continues climbing following its bounce from below 100 last week.

The Japanese yen traded at 127.48 per dollar, weaker as compared with levels below 125.6 seen against the greenback last week. The Australian dollar was at $0.7358, struggling to recover after falling from above $0.745 in the previous trading week.

Oil prices were lower in the morning of Asia trading hours, with international benchmark Brent crude futures down 0.31% to $112.81 per barrel. U.S. crude futures shed 0.38% to $107.80 per barrel.

Source : CNBC