Tech crackdown sours China markets
Bloomberg reports that China regulators are considering severe sanctions on Didi Global (NYSE:) over its US IPO. The news sent its US-listed stock sharply lower overnight in New York, and that news, part of a relentless domestic big-tech crackdown by China, appears to be weighing on early sentiment in China markets. The has opened 0.45% lower, with the down 0.15%, and Hong Kong, home to many China tech-heavyweight listings, falling 0.85%.
That contrasted with a positive session in the US yesterday, where a continuous stream of positive earnings results and fading Delta fears saw Wall Street rise once again overnight. The gained 0.20%, with the climbing 0.36% and the adding just 0.07%. Beneath the bonnet, though, the quiet rotation back into more defensive 2020 darlings at the expense of growth appears to be continuing.
Impressive results from (NYSE:) and (NYSE:) after the market close sent the and futures 0.35% higher, and that appears to be offsetting the China tech-scare in markets ex-China. Japan is closed, but the has risen by 0.15%, with Taipei 0.35% higher and Singapore and Kuala Lumpur edging 0.15% to the green.
Australian markets are also modestly higher despite an extension to the Sydney lockdown and New Zealand just announcing a suspension to the Australia New Zealand travel bubble. It seems that news was expected, and both the and remain 0.15% higher for the session.
Asian markets look content to ride out Friday with a no-further-bad-news-is-good news rally. For now, the markets appear unconcerned about either Covid or inflation and the same theme should ensure Europe and US markets finish in much the same manner. , , and US Markit ’s today will be of passing interest to financial markets in a thin data calendar week unless there are some serious downside surprises.
Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.