SINGAPORE — Shares in Asia-Pacific were mixed in Tuesday trade, as investors watched for market reaction to China’s central bank announcing financial support for Covid-hit sectors.
Hong Kong’s Hang Seng index led losses among the region’s major markets as it dropped around 1.8%, returning to trade following holidays on Friday and Monday.
Chinese tech stocks in the city tumbled after authorities in China announced Friday a ban on the livestreaming of unauthorized video games. In Tuesday morning trade, shares of Bilibili plunged 9.81% while NetEase shed 2.39%. Tencent also fell 2.51% and Alibaba dropped 3.3%. The Hang Seng Tech index traded 2.83% lower.
The Hong Kong market is expected to remain volatile as earnings “continue to face downward pressure,” Bank of America Securities’ Winnie Wu told CNBC’s “Street Signs Asia” on Tuesday.
Hong Kong’s economy is also closely tied to mainland China, said Wu, China equity strategist at the firm.
“We’re very concerned about China’s economy under this zero-Covid policy,” she said. Mainland China has for weeks been battling its most severe Covid outbreak since the initial phase of the pandemic in 2020.
On Monday, the People’s Bank of China announced it will increase financial support for industries, businesses and people affected by Covid-19.
The announcement came after China reported mixed economic data, with retail sales in March coming in below expectations while first-quarter GDP was higher than anticipated.
In Australia, the S&P/ASX 200 advanced 0.48%.
MSCI’s broadest index of Asia-Pacific shares outside Japan traded 0.15% lower.
Shares on Wall Street slipped overnight stateside. The Dow Jones Industrial Average declined 39.54 points, or 0.11%, to 34,411.69 while the S&P 500 was little changed at 4,391.69. The Nasdaq Composite shed 0.14% to 13,332.36.
Currencies and oil
The U.S. dollar index, which tracks the greenback against a basket of its peers, was at 100.948 as it continues climbing following its bounce from below 100 last week.
The Japanese yen traded at 127.91 per dollar, weaker as compared with levels below 125.6 seen against the greenback last week. The Australian dollar was at $0.7366, struggling to recover after falling from above $0.745 in the previous trading week.