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Chinese tech stocks rally after punishing losses

Chinese technology stocks plunged Wednesday morning as markets across the Asia-Pacific rose higher after punishing losses as traders digested new frameworks in China to fight the corona virus outbreak and prepare for the US Federal Reserve to raise interest rates.

The Hong Kong Hang Seng Tech Index rose 7.3% in the morning after reaching a six-year low on Tuesday. Shares of operator GDS Holdings rose 25.5% and e-commerce group JD.com added 14% this morning. Both stocks suffered heavy losses over a Sale of three sessions Which saw the Hang Seng Tech index drop by 21.8%.

The gains were not enough to make up for the heavy losses. The Hong Kong Hang Seng Index opened 3% higher, losing almost 12% of its value in the previous three sessions. China’s CSI 300 opened up 1.7%, having lost 4.6% the day before. The Australian S & P / ASX 200 rose 1.2% in morning trading, while South Korea’s Topix and South Korea’s Kospi rose 1.4% and 1.1% respectively.

The moves come ahead of a meeting of the Federal Open Market Commission that is expected to raise US interest rates for the first time since 2018, even as the war in Ukraine threatens to exacerbate inflation at its highest annual rate in 40 years.

Analysts said that the continued prospect of New restrictions on the corona virus Across China, which is struggling with its highest daily case load since 2020, could also depress markets.

“Ahead of the FOMC meeting, which will no doubt dominate the news tomorrow morning in Asia, the main ‘global’ headline today is directing work from home in Shanghai,” said analysts at ING, the Dutch bank. .

“It is not a ‘lock’ in the strict sense of the word, but it can only be considered as negative for consumer demand,” they added.

Oil prices rose more than $ 100 a barrel on Wednesday morning, with Brent international oil rising 0.5 percent to $ 100.45 a barrel after falling Tuesday to its lowest close in nearly three weeks in response to the threat of new closures in China, which would reduce Demand. . West Texas Intermediate, the American marker, rose 0.3 percent to $ 96.75.

“Our main concern at this point is that Cubid cases will be found in the port of Joshanan… Resulting in further supply disruptions to world trade. His way in China, “wrote ING analysts.

Falling oil prices raised U.S. stocks on Tuesday. The Wall Street S&P 500 ended the day up 2.1%, with all market segments rising except energy. The high-tech Nasdaq Composite, which has fallen 17% to date , Added 2.9%.

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Chinese tech stocks rally after punishing losses Source link Chinese tech stocks rally after punishing losses

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