Hong Kong tech stocks drop, Asia markets

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Hong Kong tech stocks drop, Asia markets

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SINGAPORE– Hong Kong’s Hang Seng index fell more than 2% on Friday as tech stocks came under pressure.

The benchmark index slipped 2.64% in the last hour of trade, while the Hang Seng Tech index dropped 5.41%.

Hang Seng heavyweights Alibaba and Meituan dropped 7.01% and 7.18% respectively. Alibaba is on track for a 3rd straight session of losses following news previously today that a number of Ant Group executives have actually stepped down as Alibaba partners.

Meituan shares plunged after the business was summoned by Hangzhou’s market regulator over food security and rate competitors.

Shares of Standard Chartered at first popped more 2% after the bank reported a 19% dive in revenues for the very first half of the year and revealed a $500 million share buyback. The stock later on pared gains, however was still up 0.72% in afternoon trade.

Real estate stocks in Hong Kong fell Friday.

This tips that the federal government is not going to extremely invest in facilities jobs to attain that target. Our view is that this is not such a bad thing.

Chinese leaders on Thursday indicated Beijing is not likely to attempt to enhance the economy, and minimized the nation’s GDP target of “around 5.5%.”

“This hints that the government is not going to overly spend on infrastructure projects to achieve that target. Our view is that this is not such a bad thing,” ING stated in a Friday note.

“This would give more room for the central government to solve the problem of uncompleted construction projects,” the authors included.

In mainland China, the Shanghai Composite was 0.89% lower at 3,25324 and the Shenzhen Component dropped 1.3% to 12,26692

Additionally, Beijing appears dedicated to its no-Covid policy.

“It appears to us that any change in the zero-Covid policy will only happen when authorities are convinced that mutations are less virulent and vaccines/medicines are proven to be more effective,” composed ANZ Research’s Betty Wang, a senior China financial expert, and Zhaopeng Xing, a senior China strategist.

Yen, Aussie strength

The Japanese yen reinforced dramatically versus the greenback on Friday, after compromising for months as reserve bank policy in Japan diverged from the Fed’s.

“What we’ve seen certainly over the second half of this week is a big rally in U.S. rates markets,” stated Andrew Ticehurst, a rate strategist at Nomura Australia.

“Those interest rate differentials against Japan are narrowing and that’s causing dollar-yen to come off,” he stated. Treasury yields fell after the unfavorable U.S. GDP print.

The yen last traded hands at 132.81 per dollar.

The risk-sensitive Australian dollar likewise reinforced, and last stood at $0.7022

“The improvement in global risk sentiment over the past 48 hours, and the slight weakening we’ve seen in the U.S. dollar have both been positive factors for Aussie,” Ticehurst stated.

The U.S. dollar index, which tracks the greenback versus a basket of its peers, was at 105.625

Japan’s Nikkei 225 had a hard time for instructions and closed fractionally lower at 27,80164 while the Topix index dipped 0.44% to 1,94031

The nation’s commercial output leapt 8.9% in June from the previous month, the ministry of economy, trade and market statedFriday The print amazed to the advantage after falling in May.

Elsewhere, South Korea’s Kospi increased 0.67% to 2,4515 and the Kosdaq advanced 0.66% to 803.62

The S&P/ ASX 200 in Australia was up 0.81% to close at 6,9452.

Thailand’s market is closed for a vacation Friday.

MSCI’s broadest index of Asia-Pacific shares beyond Japan lost 0.4%.

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U.S. relocations

Major U.S. indexes rallied a minimum of 1% each over night.

The Dow Jones Industrial Average leapt 332.04 points, or 1%, to 32,52963 The S&P 500 increased 1.2% to 4,07243, and the Nasdaq Composite included almost 1.1% to 12,16259

U.S. futures increased even more after tech business like Apple and Amazon reported strong revenues.

Those moves came in spite of the U.S. Bureau of Economic Analysis reporting GDP fell 0.9% at an annualized rate for the April- to-June quarter, according to the advance price quote. GDP slipped 1.6% in the very first quarter of the year.

While that is the second-straight unfavorable GDP report, main statements on whether the U.S. remains in an economic downturn originated from the National Bureau of EconomicResearch That decision might take months and even longer.

U.S. crude was up 1.18% at $9756 per barrel, while Brent crude was 0.78% greater at $10798 per barrel.

— CNBC’s Evelyn Cheng added to this report.