The major Asia Pacific stock indexes finished mixed with some snapping their longest losing streaks since February on Thursday. For the buyers, the catalyst was a rebound on Wall Street. For the bears, the recent correction didn’t take prices low enough and stocks remain overvalued especially in the tech sector. They cited weak performances in the currency, commodity and bond markets as reasons to remain cautious about the outlook for risk sentiment.
In the cash market on Thursday, Japan’s Nikkei 225 Index settled at 23235.47, up 202.93 or +0.88%. Hong Kong’s Hang Seng Index finished at 24313.54, down 156.39 or -0.64% and South Korea’s KOSPI Index closed at 2396.48, up 40.67 or +0.87%.
In China, the Shanghai Index settled at 3234.82, down 19.80 or -0.61% and Australia’s S&P/ASX 200 finished at 5908.50, up 29.90 or +0.51%.
China Stocks Shed Early Gains as Regulators Move to Curb Speculation
China shares shed early gains to end lower on Thursday, as more than 300 start-ups slumped earlier in the session after regulators moved to curb speculation on the tech-heavy ChiNext board.
Shares in China’s start-up firms plunged as investors retreated after a few stocks were suspended from trading due to “abnormal volatility” amid reports of government measures to crack down on speculation.
The start-up board ChiNext Composite Index, which gained more than 40% this year, fell 1.6% and Shanghai’s tech-focused STAR50 Index lost 1.38%. More than 300 start-ups dropped more than 10% on Thursday, including 50 companies hitting their downside trading limits.
Shares of Chinese telecom firms also tumbled, as pressure widened for Huawei Technologies with major suppliers expected to stop applying to the telecom giant after new U.S. restrictions.
Hong Kong Shares Track Mainland Stocks Lower as China Start-Ups Drag
Hong Kong shares retreated in the afternoon session to finish lower on Thursday, tracking broad weakness in the mainland market dragged down by a slump in China’s start-up stocks.
Yum China Holdings Inc dropped as much as 6.3% on its Hong Kong market debut, bucking the recent trend of first day pops for local listings with global markets’ volatility weighing on investor sentiment.
Australian Shares End Higher on Hopes of Easing in Virus Curbs
Australian shares closed higher on Thursday as a decline in daily cases in COVID-19 hot spot Victoria boosted hopes of an easing in restrictions.
A dip in daily infections in Victoria to double-digits in the recent days and the Federal Health Minister Greg Hunt’s urge to lift the state’s night curfew, if not imposed on medical grounds, stirred hopes of a relaxation in curbs.
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This article was originally posted on FX Empire