Asia report: Markets finish mixed as Chinese tech plays weaken
By Josh White
Date: Tuesday 23 Nov 2021
(Sharecast News) - Markets closed in a mixed state in Asia on Tuesday, with technology shares a particular point of pain in the region, as investors reacted to the news that US President Joe Biden had renominated Jerome Powell as chair of the Federal Reserve for a second term.
In Japan, markets were closed for the Labor Thanksgiving Day holiday, as the yen strengthened 0.04% on the dollar to last trade at JPY 114.83.
On the mainland, the Shanghai Composite was up 0.2% at 3,589.09, and the smaller, technology-centric Shenzhen Composite slipped 0.21% to 2,520.37.
South Korea's Kospi was off 0.53% at 2,997.33, while the Hang Seng Index in Hong Kong was 1.2% weaker at 24,651.58.
Chinese technology plays were in the red in the special administrative region, following the lead of their American peers on Wall Street overnight.
Alibaba was down 2.99% in Hong Kong, while Meituan lost 3.14% and Tencent Holdings was off 2.67%.
The blue-chip technology stocks were mixed on the Korean peninsula, with Samsung Electronics up 0.53%, while SK Hynix lost 0.42%.
Biopharmaceutical play Celltrion was among the leading losers in Seoul, meanwhile, closing down 6%.
The moves in Asia came after a similarly mixed session stateside overnight, after Joe Biden confirmed he was renominating Jerome Powell for a second term as chair of the Federal Reserve.
Biden had been under pressure to install a more progressive Democrat into the role, over holding steady with Republican Powell, who had been behind the unprecedented stimulus from the central bank through the Covid-19 pandemic.
The renomination of Powell now needed the confirmation of the Senate.
"While Lael Brainard, who secured the vice chair position is also a more than competent candidate, her appointment would have introduced a fresh level of uncertainty into a market that is looking with increasing concern at events that are unfolding in certain parts of Europe," said CMC Markets chief market analyst Michael Hewson.
"When Powell first took over from Janet Yellen back in 2018, it took a while for markets to familiarise themselves with the new Fed chairman, and for the new Fed chairman to familiarise himself with the markets.
"The reappointment of Powell signals a steady as she goes approach, sending US yields sharply higher, along with the US dollar, while gold prices plunged."
Oil prices were lower as the region went to bed, with Brent crude last down 0.77% at $79.09 per barrel, and West Texas Intermediate losing 1.11% to $75.90.
In Australia, the S&P/ASX 200 managed gains of 0.78% to close at 7,410.60, lifted by the hefty financials subindex, which ended the day up 0.85%.
The country's big four banks were all in the green, with Australia and New Zealand Banking Group up 1.91%, Commonwealth Bank of Australia ahead 1.06%, National Australia Bank rising 0.85%, and Westpac Banking Corporation 0.6% firmer.
Across the Tasman Sea, New Zealand's S&P/NZX 50 was 0.64% firmer at 12,688.53, as investors looked to the looming meeting of the Reserve Bank of New Zealand later in the week.
Market participants are picking a second interest rate hike from the central bank, after it became the first of any of the G10 currencies to raise rates in the wake of the Covid-19 pandemic in October.
The official cash rate currently stands at 0.5%, having been lifted from its historic low of 0.25%, where it was held since the start of the coronavirus crisis in March 2020.
Both of the down under dollars were weaker against the greenback, with the Aussie last off 0.01% at AUD 1.3842, and the Kiwi retreating 0.35% to NZD 1.4424.
Email this article to a friend
or share it with one of these popular networks:
You are here: news
10 Lower Thames St,
London EC3R 6EN