Asian markets slip as Hang Seng index slumps over 3%; Dow futures down

In other markets, South Korea’s Kospi edged 0.8% lower and in Australia, the S&P/ASX 200 was almost flat on Monday.

Jul 26, 2021 12:07 IST India Infoline News Service

Asian stock market
Asian stock markets were trading lower as steep selling pressure was witnessed in Hong Kong's Hang Seng index.

The Japanese 'Nikkei' trading higher by over 250 points after the long weekend holidays. The other markets were in the negative zone as the weakness in Chinese technology stocks saw the Hang Seng trade lower which hurt sentiment. Chinese stocks listed in Hong Kong have seen relentless selling following the downtrend in listed US ADR's.

According to the media reports, China’s antitrust regulator ordered Hong Kong-listed shares of Chinese tech giant Tencent to give up its exclusive music licensing rights and slapped a fine on it for anti-competitive behaviour. Tencent slipped 4.52% in Monday morning trade. Alibaba also dropped 3.61% while Meituan fell 4.69%.

Mainland Chinese stocks declined, with the Shanghai Composite down 2.69% while the Shenzhen Component fell 2.94%. In other markets, South Korea’s Kospi edged 0.8% lower and in Australia, the S&P/ASX 200 was almost flat on Monday.

Meanwhile, US equities rebounded sharply last week after a steep fall and all three key indices ended with weekly gains of 1-2.8%. The Dow Jones Industrial Average closed above 35,000 for the first time ever while the S&P 500 jumped 1.01% to 4,411.79 and the Nasdaq Composite gained 1.04% to 14,836.99.

Stock futures slipped with Dow Jones Industrial Average futures declined 157 points. S&P 500 and Nasdaq 100 futures also both traded in negative territory.

For the week, June quarter earnings and Federal Reserve meeting outcome on Wednesday will be most crucial. S&P 500 companies would be reporting earnings report cards including Apple. Microsoft, Tesla, Alphabet.

The Federal Open Market Committee and the Board of Governors are expected to issue a statement on the stance of monetary policy Wednesday. On Thursday the Commerce Department will report second-quarter GDP data.

Further, investors would be keenly watching out any indication about actual timeline for reversal of monthly US$120bn bond-buying programme. 

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