Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Asian stocks rise, Hang Seng boosted by more tech splits

Published 03/30/2023, 11:42 PM
Updated 03/30/2023, 11:55 PM
© Reuters.

© Reuters.

By Ambar Warrick

Investing.com -- Most Asian stocks rose on Friday and were headed for a positive quarter amid easing fears of a banking crisis, with Hong Kong stocks leading gains on reports that e-commerce firm JD.com plans to follow rival Alibaba in splitting its operations.

The Hang Seng index jumped 1%, with shares of JD.com (HK:9618) (NASDAQ:JD) up nearly 7% after media reports said that the firm plans to spin off its property and industrial units on the Hong Kong exchange, valuing them at $1 billion each.

The news comes after JD rival Alibaba Group Holding Ltd (HK:9988) (NYSE:BABA) also announced a six-way split earlier this week, which was welcomed by investors in hopes that China’s regulatory attitude towards its technology giants will improve after a three-year crackdown.

Technology stocks were the biggest boosts to the Hang Seng on Friday, with Alibaba up 3.5%. This put the index on course for a nearly 3% weekly gain. The Hong Kong benchmark also added over 3% in the first quarter of 2023.

But Chinese stocks lagged their regional peers on Friday, with the Shanghai Shenzhen CSI 300 and Shanghai Composite indexes up about 0.2% each.

Purchasing managers’ index (PMI) data showed that while Chinese service sector activity grew at its fastest pace in 12 years in March, manufacturing activity slowed from the prior month, pointing to an uneven recovery in Asia’s largest economy.

The manufacturing sector acts as a bellwether for China’s economy, and is facing increasing headwinds from slow overseas demand. This is also likely to delay a bigger recovery in the Chinese economy this year, despite the lifting of anti-COVID restrictions.

Still, China-exposed stock markets advanced on Friday. South Korea’s KOSPI added 1%, while Australia’s ASX 200 index jumped 0.8%, and was set to add over 3% this week as markets began pricing in an imminent pause in the Reserve Bank’s rate hikes.

Japan’s Nikkei 225 index surged 0.9% after data showed inflation in Tokyo eased in March, albeit at a slower-than-expected pace. Other data showed that Japanese industrial production rebounded sharply in February following steep declines in January.

Broader Asian stocks advanced, and were set for strong quarterly performances as fears of a banking crisis eased. Focus is now squarely on the U.S. personal consumption expenditures index, which is the Federal Reserve’s preferred inflation gauge.

Latest comments

They dumped it already. Shame
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.