Stocks in Asia-Pacific edge higher,  China tech stocks slide in Hong Kong

Stocks in Asia-Pacific edge higher, China tech stocks slide in Hong Kong

Shares in Asia-Pacific edged higher in Tuesday morning trade as several Chinese stocks in Hong Kong remained under pressure after shares fell sharply to their lowest this year on Monday.

The Hang Seng Tech index fell 0.82%, weighed down by a 2.78% drop in Alibaba Group Holding Ltd and a 2.6% drop in Tencent Holdings Ltd in Tuesday morning trade.

The broader Hang Seng index in Hong Kong rose 0.4%, after seeing a more than 4% plunge yesterday on the back of regulatory fears on China’s technology and private education sector.

Mainland Chinese stocks rose, with the Shanghai composite was higher by 0.46% while the Shenzhen component gained 0.758%. Profits at China’s industrial firms rose 20% in June from a year earlier to 791.8 billion yuan ($122.27 billion).

Elsewhere, the Nikkei 225 in Japan jumped 0.63% while the Topix index advanced 0.61%. South Korea’s Kospi climbed by 0.76%.

MSCI’s broadest index of Asia-Pacific shares outside Japan traded 0.26% higher.

Overnight on Wall Street, the S&P 500 gained 0.24% to 4,422.30 while the Dow Jones Industrial Average edged 82.76 points higher to 35,144.31. The Nasdaq Composite was fractionally higher at 14,840.71. The gains left all three major indexes stateside closing at new record highs.

Currencies and oil

The U.S. dollar index, which tracks the greenback against a basket of its peers, was at 92.596 after a recent fall from above 92.8.

The Japanese yen traded at 110.28 per dollar, stronger than levels around 110.5 seen against the greenback yesterday. The Australian dollar was at $0.7378, above levels below $0.736 seen yesterday.

Oil prices were higher in the morning of Asia trading hours, with Brent crude futures up 0.35% to $74.76 per barrel. U.S. crude futures advanced 0.22% to $72.07 per barrel. 

Damon Harrison
Market Analyst, IPG Group