Asia-Pacific Shares

Asia-Pacific Shares Mixed; China’s Tech Giants See $280 Billion in Market Value Erased Since Monday’s Close

The major Asia-Pacific stock indexes finished mixed on Wednesday. Gains were muted by declines in the technology sector as traders followed similar losses on Wall Street. Hong Kong-listed shares of Chinese tech firms were among the hardest hit on Wednesday. Investors in Japan and South Korea seemed to ignore the trend, while higher oil prices supported the market in Australia.

In the cash market on Wednesday, Japan’s Nikkei 225 Index settled at 25349.60, up 444.01 or +1.78%. Hong Kong’s Hang Seng Index finished at 26226.98, down 74.50 or -0.28% and South Korea’s KOSPI Index closed at 2485.87, up 33.04 or +1.35%.

China’s Shanghai Index settled at 3342.20, down 17.95 or -0.53% and Australia’s S&P/ASX 200 finished at 6449.70, up 109.20 or +1.72%.

China’s Tech Giants Pressured by Regulatory Concerns

Shares of China’s top technology giants were battered on Wednesday as regulatory concerns continue to mount.

By the Wednesday market close in Hong Kong shares of Alibaba listed in the city plunged 9.8% while Tencent dropped 7.39%. Smartphone maker Xiaomi also declined 8.18% and China’s biggest on-demand delivery services firm Meituan Dianping fell 9.67%. E-commerce giant JD.com also saw its stocks plummet 9.2%.

The broader Hang Seng Tech Index was also hammered and fell 6.23% on the day to 7,465.44.

The combined losses of the five tech heavyweights since their Monday’s close has contributed to more than $280 billion being wiped off in terms of market cap at the close of the trading day in Hong Kong, based on CNBC’s calculations.

Chinese regulator – the State Administration for Market Regulation – on Tuesday announced a set of draft rules aimed at curbing monopolistic behavior on internet platforms.

The moves were possibly further exacerbated by a global rotation out of tech stocks seen globally in recent days.

Australia’s biggest IPO in Two Years to price from Friday, Macquarie Set for Windfall

Macquarie Group plans to price  the initial price offering (IPO) of its majority-owned data analytics software business this week, earlier than planned, with the Australian investment firm on track to triple its investment.

A cornerstone bookbuild for software company Nuix is expected to be held on Friday to set a price for institutional buyers, a source with knowledge of the situation said, a week ahead of schedule due to growing risk appetite after the U.S. election.

At least half the company would be on offer to raise about A$900 million ($657 million), both people said, making it the country’s largest listing since Viva Energy’s $1.9 billion IPO in 2018, according to Refinitiv data.

For a look at all of today’s economic events, check out our economic calendar.

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James Hyerczyk

James A. Hyerczyk has worked as a fundamental and technical financial market analyst since 1982. His technical work features the pattern, price and time analysis techniques of W.D. Gann.