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Asia markets up but Hong Kong lower as Alibaba slumps

Alibaba slumps

The benchmark Hang Seng index dropped 1.72% while the tech-focused Hang Seng tech index declined 1%

Hong Kong shares dropped on Friday, extending losses from the previous session as some of China’s biggest tech names remained under pressure.

The benchmark Hang Seng index dropped 1.72% while the tech-focused Hang Seng tech index declined 1% in afternoon trade.

The Hong Kong stock market has moved lower in six consecutive trading days, slumping nearly 400 points or 1.8 percent along the way.

Alibaba shares listed in Hong Kong fell more than 10% after the technology giant missed revenue and earnings expectations for the September quarter, as slowing economic growth in China weighed on results.

The company reported revenue of 200.69 billion yuan ($31.44 billion), less than the 204.93 billion yuan ($32.11 billion) estimated but still a 29% year-on-year (YOY) rise. The company reported earnings per share of 11.20 yuan ($1.75), less than an estimate of 12.36 yuan ($1.94) and a 38% year-on-year decline.

Alibaba’s U.S.-listed shares declined 11.1% on Thursday.

Shares of Meituan were down 2.66%, Baidu lost 3.77% and Tencent shed 0.81%. Alibaba-rival JD bucked the downward trend and added 7.12%.

Broadly, shares traded mixed across Asia-Pacific.

Mainland Chinese stocks rose. The Shanghai composite was up 0.59%, while the Shenzhen component climbed 0.67%.

In Japan, the benchmark Nikkei 225 added 0.5%, while the Topix was up 0.44%. Investors are on the lookout for an expected announcement of a record $488 billion stimulus package in Japan later on Friday, with Reuters citing media reports.

Australia’s ASX 200 gained 0.23%. Shares of Crown Resorts surged more than 16.57% after a $6.2 billion buyout offer from investment firm Blackstone, according to Reuters.

South Korea’s Kospi was up 0.86%. India’s markets are closed for a holiday on Friday.

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