Hong Kong tech stocks drag market down 2%; Asia markets drop

Hong Kong tech stocks drag market down 2%; Asia markets drop

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The Chinese and Hong Kong flags flutter as screens show the Hang Seng Index outside the Exchange Square complex, which houses the Hong Kong Stock Exchange, on January 21, 2021 in Hong Kong, China.

Zhang Wei|China News Service through Getty Images

Shares in the Asia-Pacific fell on Monday, with Hong Kong’s Hang Seng prominent losses as Chinese chip stocks noted in the city plunged following brand-new export guidelines from the U.S.

China’s biggest chipmaker Semiconductor Manufacturing International Corporation fell as much as 5.23%, while Hua Hong Semiconductor dropped more than 10% and Shanghai Fudan Microelectronics Company plunged as low as 24.6% throughout early morning trade.

The wider Hang Seng index was 2.95% lower at 17,21666, with the Hang Seng Tech index down 3.98%. HSI heavyweight Meituan fell 6.71%.

In mainland China, the Shanghai Composite lost 1.66% to 2,97415 on its very first day of trade after the Golden Week vacation, while the Shenzhen Component dropped 2.38% to 10,52212 The CSI 300 index, which tracks the biggest mainland-listed stocks, slipped 2.21% to 3,72094

The S&P/ ASX 200 was 1.62% lower at 6,66780 MSCI’s broadest index of Asia-Pacific shares outside Japan traded 1.88% lower. Markets in Japan, South Korea, Taiwan and Malaysia are closed for vacations Monday.

Later today, the Bank of Korea will reveal its benchmark rates of interest choice, Singapore is set to reveal its GDP price quote for the 3rd quarter and China launches inflation information.

Taiwan Semiconductor Manufacturing Company and Japan’s Fast Retailing will report profits and the U.S. will launch inflation information for September.

On Friday in the U.S., significant stock indexes dropped more than 2% after information revealed the joblessness rate decreased in September, triggering worry that the Federal Reserve would continue treking rates strongly.