Asian stocks dip, Alibaba leads China tech rout By
2023-11-17 12:20:09

-- Most Asian stocks fell on Friday, cooling after marking some strong gains earlier this week, while Chinese technology stocks clocked steep losses after flagged the impact of recent U.S. chip export curbs. 

Regional markets took a weak lead-in from Wall Street, as the tail end of a fairly sobering earnings season brought little cheer. Weaker-than-expected data also pointed to more cooling in the U.S. economy.

An overnight spike in U.S. Treasury yields also pressured stock markets.

Chinese tech, Hong Kong stocks battered by Alibaba 

Hong Kong’s index was by far the worst performer on Friday, down 1.6% on heavy losses in locally-listed Chinese tech stocks.

Alibaba Group (HK:) (NYSE:) slid 10% to a one-year low and was the biggest decliner on the index, after the e-commerce giant scrapped the planned .

The firm cited uncertainties over the supply of chips needed for artificial intelligence development, after the U.S. recently tightened its chip export ban against China to cover AI-related materials.

Alibaba’s move highlighted a similar issue for other Chinese firms, as they now face the challenge of developing AI without the cutting-edge technology provided by U.S. firms, specifically Nvidia (NASDAQ:). 

Inc (HK:) (NASDAQ:) and Tencent Holdings Ltd (HK:), which together with Alibaba make up the BAT (LON:) trio, sank 5.4% and 1.7%, respectively. Tencent had also warned of similar difficulties as Alibaba earlier this week. 

Losses in domestic tech stocks saw China’s and indexes fall 0.5% and 0.3%, respectively. 

High-level talks between U.S. and Chinese leaders yielded little support for markets. While the countries agreed to reopen military communications, U.S. President Joe Biden referred to his Chinese counterpart Xi Jinping as a “dictator,” somewhat putting a dampener on sentiment over their meeting. 

Weakness in China tech spilled over into other markets. South Korea’s sank 0.7%, while Australia’s fell slightly. 

Futures for India’s index pointed to a slightly weaker open. 

Japan’s was flat as Bank of Japan Governor Kazuo Ueda stressed on the need for ultra-loose policy, especially after data earlier this week showed that Japan’s economy in the third quarter.

But despite the weak economic signals, the Nikkei was set to add 2.7% this week- its third straight week in black. The prospect of a dovish BOJ kept investors largely bullish on Japanese stocks. 

Most other Asian markets were also set for weekly gains, having rallied sharply on the back of softer-than-expected U.S. inflation data, which ramped up bets that the Federal Reserve will not hike interest rates further.

But markets remained uncertain over when the bank will begin trimming rates.

The content of this article does not represent the views of fxgecko website. The content is for reference only and does not constitute investment suggestions. Investment is risky, so you should be careful in your choice! If it involves content, copyright and other issues, please contact us and we will make adjustments at the first time!

Related News

您正在访问的是FxGecko网站。 FxGecko互联网及其移动端产品是中国香港特别行政区成立的Hitorank Co.,LIMITED旗下运营和管理的一款面向全球发行的企业资讯査询工具。

您的IP为 中国大陆地区,抱歉的通知您,不能为您提供查询服务,还请谅解。请遵守当地地法律。