SINGAPORE — Hong Kong-listed shares of Chinese chipmaker SMIC fell on Monday following reports that the U.S. has imposed restrictions on exports to the firm due to risks of military use.
Shares of SMIC listed in the city fell 3.88% on Monday, against a broader rise in the sector as the Hang Seng Tech index gained 0.86% on the day to 6,978.59.
The reported move by the U.S. government would hurt China’s plans to boost its domestic semiconductor industry. Tension between Washington and Beijing has accelerated China’s plans to boost its own chips industry.
Evergrande shares bounce back
Today’s stock market is drawing a lot of comparisons to the dot-com bubble popping at the turn of the century. Some similarities exist between today’s elevated Nasdaq-earnings multiple and the events causing the bubble to pop.
Regardless, these two time periods should not be considered synonymous. Here we will explore the similarities and the more apparent differences of the year 2000 vs. today.
Meanwhile, shares of China Evergrande Group in Hong Kong soared 20.61%. It came after the Shenzhen-based property developer, announced Friday that its “operations remain stable and healthy while financial conditions remain sound.”
Evergrande shares in Hong Kong had seen a Friday plunge on the back of reports on a leaked document that showed the Chinese property developer was seeking government support to approve a restructuring plan, warning of an impending cash crunch.
Overall, the Hang Seng index in Hong Kong rose 1.04% to close at 23,476.05.
Mixed Monday for Asia-Pacific markets
Mainland Chinese stocks lagged on the day, with the Shanghai composite fractionally lower at about 3,217.53 while the Shenzhen component shed 0.415% to around 12,760.93.
China’s industrial profits rose 19.1% in August, the country’s National Bureau of Statistics announced over the weekend. Chinese economic data has been watched by investors for signs of the country’s continued recovery from the coronavirus pandemic.
Elsewhere, in Japan, the Nikkei 225 added 1.32% to close at 23,511.62 while the Topix index gained 1.69% to finish its trading day at 1,661.93. South Korea’s Kospi rose 1.29% to close at 2,308.08, with entertainment shares in the country jumping after K-pop sensation BTS’ label Big Hit Entertainment priced its anticipated IPO at the top end of the range.
Over in Australia, the S&P/ASX 200 slipped 0.21% to end its trading day at 5,952.30.
Overall, the MSCI Asia ex-Japan index rose 0.74%.
Currencies and oil
The U.S. dollar index, which tracks the greenback against a basket of its peers, was at 94.486 after rising from levels below 93.0 last week.
The Japanese yen traded at 105.34 per dollar following an earlier low of 105.68 against the greenback. The Australian dollar changed hands at $0.7048 after sliding from levels above $0.72 last week.
Oil prices were lower in the afternoon of Asian trading hours, with international benchmark Brent crude futures down 0.69% to $41.63 per barrel. U.S. crude futures also shed 0.8% to $39.93 per barrel.
