Asian markets settle on a mix note with Hang Seng index taking breather from steep selloff; European markets mixed

The Chinese markets also ended almost flat on Wednesday struggling to recover from the declines of the past few days.

Jul 28, 2021 02:07 IST India Infoline News Service

Asian markets were mixed on Wednesday’s trade ahead of a key policy announcement from the U.S. Federal Reserve. The Hang Seng index recouped its losses and gained today after a massive sell-off for two days. The index fell over 8% just two days earlier this week triggered by regulatory fears over sectors such as technology and private education.

The Chinese markets also ended almost flat on Wednesday struggling to recover from the declines of the past few days. The declines come after Chinese regulators continue to step up their oversight in sectors spanning from technology to education and food delivery. The increased scrutiny spooked investors and sent many scrambling for the exit.

South Korea’s Kospi rose 0.13%, S&P/ASX 200 in Australia dipped 0.7%. In Japan, the Nikkei 225 dropped 1.39% while the Topix index slipped 0.95% to finish the trading day at 1,919.65.

European markets were mixed on Wednesday morning with the pan-European Stoxx 600 inched higher in early trade, with travel and leisure stocks adding 0.9% while chemicals fell 0.7%.

Meanwhile, US equities finished lower as concerns of the Chinese regulatory crackdown weighed on sentiments. Stocks corrected due to selling pressure in technology stocks as investors worried about a sell-off in Hong Kong’s Hang Seng index, which has put pressure on equities across the world.

Further, heavyweights like Apple, Alphabet and Microsoft yesterday reported June quarter earnings and all of them exceeded consensus earnings estimates. However, soft commentary from Apple about expectations of slowing revenue due to Chip shortage weighed on sentiment.

Federal Reserve policy meeting outcome today will be in focus.

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