MSCI’s broadest index of Asia-Pacific shares outside Japan was 0.05% higher, Hang Seng Index was 0.7% lower, CSI300 was off by nearly 0.3%, Nikkei was 0.45% higher, S&P ASX200 was 0.21% higher, while Kospi 200 Index gained 0.5%
Most share markets in Asia opened slightly higher on Tuesday, ahead of a key decision by Australia’s central bank on its quantitative easing programme and despite ongoing concerns over the regulation of China’s technology sector.
U.S. markets were closed on Monday for Independence Day holiday, leaving the Asian markets without a strong lead to start trading on Tuesday.
MSCI’s broadest index of Asia-Pacific shares outside Japan was 0.05% higher. In Hong Kong, the Hang Seng Index was 0.7% lower while China’s CSI300 was off by nearly 0.3%.
Japan’s Nikkei was 0.45% higher while the S&P ASX200 was 0.21% higher. In South Korea, the Kospi 200 Index gained 0.5% in early trade.
Chinese technology stocks remain under scrutiny on Tuesday after the Cyberspace Administration of China (CAC) ordered an investigation into Didi Global Holdings just days after it listed on the New York Stock Exchange (NYSE).
There is still lingering uncertainty from China’s tech companies and they are prominent in the Asian market, so that could be a cloud for market sentiment, said Tai Hui, JPMorgan Asset Management chief Asia market strategist.
The tech sector is very significant in Asia and we are not going to have a lot of clarity on the regulatory adjustments in China for the next few weeks or even months and (that) will be an important driver for the market, Hui said.
In Australia, investors are scrutinising the prospect of more mergers and acquisitions (M&A) activity after a $16.7 billion bid for Sydney Airport Holdings Ltd from a pension fund consortium emerged on Monday.
Sentiment appears to have almost moved past the (economic) reopening trade and into outlook for corporate earnings that are coming up in August, Karen Jorritsma, head of equities at RBC Capital Markets in Sydney told Reuters.
She said: Generally (earnings) ‘confession season’ has been remarkably good, and with balance sheets in such great shape the tide is turning to potential for M&A.
