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Asian stocks mixed as spotlight falls on Tencent

Chinese technology giants rebounded with surging 8%. Tencent added 4.8% ahead of its third quarter earnings.

Asian stocks mixed as spotlight falls on Tencent

Update (15:00): Asian markets were mixed Thursday even as Chinese technology giants rebounded ahead of third quarter earnings by Tencent. 

Japan’s Nikkei 225 gained 0.7% while the Kospi in South Korea fell 0.4%. The Shanghai Composite was 0.2% lower.

The S&P ASX 200 index in Australia lost 0.5%. It closed at 6,449.70 on Wednesday, that was its highest level since February. 

The Taiwan Capitalization Weighted Stock Index shed 0.3%. The Straits Times Index in Singapore fell 0.5% and Thailand’s SET Index dropped 0.9%. FTSE Bursa Malaysia KLCI added 0.5%.

Hong Kong’s Hang Seng Index lost 113.42 points or 0.4%. Chinese tech giants had led the index lower Wednesday, after draft guidelines aimed at stopping monopolistic behaviour were released.

Alibaba jumped 1.6% at mid-day. surged 8% and Meituan climbed 5.5%. Xiaomi rose 2.9%.

Tencent rose 4.8% ahead of its third quarter earnings, that were scheduled to be released after Asia markets close. 

‘Weighing almost one-tenth of the Hang Seng Index, Tencent Holdings’s performance would be crucial for the index going into the end of week.

‘As it is, prices are seeing resistance towards 26,700, close to the July highs,’ said IG senior market strategist Jingyi Pan. 

Technology was similarly in the spotlight on Wall Street, as the Nasdaq rallied over 2% on Wednesday, 

The Dow lost 0.1% while the benchmark S&P 500 picked up 0.8%. 

‘US equities were stronger overnight as tech stocks did slightly better than the previous two days. More positive vaccine news might be on the way soon,’ said Stephen Innes, chief global market strategist at Axi.

Amazon gained 3.4%, while Microsoft was up 2.6%. Netflix climbed 2.2%, and Facebook and Alphabet gained 1.5% and 0.6% respectively.

Major US indices were set to open lower. Futures for the Nasdaq and Dow were down 0.3% and 0.7% respectively. S&P 500 futures eased 0.6%. 

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