Alibaba, Baidu Slide Over 3% As Wall Street Horror Spreads To Hong Kong Stocks: Report Sparks Fears Of US-China Tensions Over Taiwan
Hong Kong shares plunged on Wednesday, taking cues from a heavy sell-off on Wall Street triggered by higher-than-expected U.S. inflation for August. Shares of Alibaba, Baidu, and JD.com fell over 3%, with the benchmark Hang Seng Index losing over 2.3%.
Hong Kong shares plunged on Wednesday, taking cues from a heavy sell-off on Wall Street triggered by higher-than-expected U.S. inflation for August. Shares of Alibaba, Baidu, and JD.com fell over 3%, with the benchmark Hang Seng Index losing over 2.3%. A report of the United States considering sanctions against China to ward off any potential attack on Taiwan further soured market sentiment.
|Alibaba Group Holding Ltd. (NYSE:BABA)||-3.56%|
|JD.com Inc (NASDAQ:JD)||-3.26%|
|Baidu Inc (NASDAQ:BIDU)||-4.48%|
|Tencent Holdings Ltd. (OTC:TCEHY)||-1.31%|
|Nio Inc (NYSE:NIO)||1.61%|
|XPeng Inc (NYSE:XPEV)||-1.01%|
|Li Auto Inc (NASDAQ:LI)||1.74%|
Despite the sell-off, shares of EV makers Nio and Li Auto held up with gains of over 1%.
Macro News: Chinese Premier Li Keqiang has called for more policies to boost consumption in the economy as the latest data indicate a further slump in travel and spending over a three-day public holiday amid COVID-19 controls, reported Bloomberg.
The United States is looking at options for a sanctions package against China to prevent it from invading Taiwan, with the European Union coming under diplomatic pressure from Taipei to do the same, Reuters reported, citing sources.
Tencent Holdings received approval for a new game for the first time since Chinese authorities froze all licensing in 2021, according to media reports.
Top Gainers and Losers: Techtronic Industries Company Limited and WuXi Biologics (Cayman) Inc. are the top losers among Hang Seng's top 30 constituents, shedding over 6% and 4%, respectively. CNOOC Limited is the only gainer, up 0.6% on Wednesday morning.
Global News: U.S. futures traded mixed on Tuesday morning Asia session. The Dow Jones futures were up 0.08%, while Nasdaq futures lost 0.07%. The S&P 500 futures rose 0.04%.
Elsewhere in Asia, Australia’s ASX 200 plunged 2.76%. Japan’s Nikkei 225 was down 2.29% while China’s Shanghai Composite index fell 0.74%. South Korea’s Kospi, too, was down 1.62%.