On Monday, the Hang Seng Tech index in Hong Kong dropped, as there was a decline in Asia-Pacific’s major indexes. There was a 0.22% drop in the Hang Seng index in Hong Kong, which closed at 20,562.94 and there was a 1.38% drop in the Hang Seng Tech index.
China’s market
Reports over the weekend said that China is planning on sorting the companies listed in the US into three categories, depending on the sensitivity of the information that the companies may have. The purpose of this new system is to prevent Chinese companies from being delisted in the country by regulators in the US.
Their goal is to ensure that these companies are in compliance with American rules. According to the report, some Chinese firms will have to delist in the United States because of the ‘secret’ data they have. However, the securities regulator in China said that they had not come up with a three-tiered system for assisting Chinese companies in avoiding delisting in the US.
Asian indexes
On Monday, the shares of Chinese companies listed in the US dropped in the Hong Kong market. There was a 6.42% fall in Nio, a 6.3% decline in XPeng, and a 2.45% loss in the shares of Alibaba. The markets in mainland China were also down for the day.
There was a 0.60% drop in the Shanghai Composite that brought it down to 3,250.39, while an 0.83% fall in the Shenzhen Composite brought it down to 12,291.59. A 0.77% drop was also recorded in the Nikkei 225 index in Japan that bringing it down to 27,699.25, while a 0.65% loss was seen in the Topix index that bringing it down to 1,943.21.
The Kospi index in the South Korean markets bucked the trend to go up by 0.44% and reach 2,403.69. As for the Kosdaq index, it was trading flat for the day at a value of 789.69. The S&P/ASX 200 index in Australia also lowered fractionally to 6,789.9. As for the MSCI’s index of Asia-Pacific shares excluding Japan, they suffered losses of 0.44%.
Other data
On Monday, the Monetary Authority of Singapore (MAS) stated that there was a 4.4% increase in the core inflation numbers in the country in June as compared to a year earlier. The number had stood at 3.6% back in May and it was higher than analysts’ expectations of 4.2%.
The trade ministry of Singapore said that the increase in core inflation reflects the sharp increase in prices across different categories of food, services, gas, electricity, and other goods. Later this week, traders will be keeping their eyes out on the interest rate decision of the US Fed, along with the release of the gross domestic data for the second quarter in the US.
There is a 76.3% expectation that the central bank will hike the interest rate by 75 basis points. As the focus is on the monetary policy meeting of the Federal Reserve, it is likely that Asian assets will continue to be mixed in trading.