Asian markets mostly gained in early trading Monday, amid fallout of U.S. restrictions against Chinese tech companies.
Japan’s Nikkei 225 (NIKKEI:JP:NIK) rose 0.7% and Hong Kong’s Hang Seng index (HONG:HK:HSI) advanced 0.8%. The Shanghai Composite (SHG:CN:SHCOMP) slipped 0.2%, while the smaller-cap Shenzhen Composite (SHENHZEN:CN:399106) fell 0.6%. South Korea’s Kospi (KOREA:KR:180721) gained 1.3%, while benchmark indexes in Taiwan (TAIWAN:TW:Y9999) , Singapore (SES:SG:STI) and Indonesia (INDONESIA:ID:JAKIDX) were mixed. Australia’s S&P/ASX 200 (S&P:AU:XJO) inched up 0.2%.
Hong Kong-traded shares of Chinese chip maker Semiconductor Manufacturing International Corp. (HKG:HK:981) plunged after weekend reports that the U.S. government has imposed sanctions against it, over concerns that exports to the company were being diverted to military uses, according to the Financial Times .
In Japan, chip maker Kioxia Holdings Corp. postponed its massive IPO , after saying last week that U.S. export restrictions against China’s Huawei Technologies were hurting its business.
And in the U.S. on Sunday, a federal judge blocked the Trump administration’s ban against the popular Chinese-owned TikTok app from U.S. app stores. The U.S. has claimed the app poses a national security risk, and a deal to partner with Oracle (NYS:ORCL) and Walmart (NYS:WMT) to assuage those concerns is in the works.
Stocks on Wall Street rose Friday , but for the week, the Dow (DOW:DJIA) was down 1.8%, and the S&P 500 (S&P:SPX) lost 0.6%. It was the fourth straight weekly decline for the two indexes, matching the longest losing streak since August 2019. The Nasdaq (AMERICAN:COMP) gained 1.1% for the week, ending a three-week stretch of declines.
“This week is all about payrolls and presidential debates,” Stephen Innes, chief global markets strategist at AxiCorp, wrote in a note. “But political malevolence and the torrent of global pandemic concerns continue to rattle on investors’ nerves.”