Alibaba drags tech stocks lower in Hong Kong on overhang concerns while China data disappoints amid Omicron cases
- Tech and property stocks weighed on the Hang Seng Index while stocks in mainland China reopen with big gains after a five-day trading break
- Alibaba files in the US to register 1 billion American depositary shares, or about 36 per cent of its existing base
The Hang Seng Tech Index tumbled 0.9 per cent. The broader Hang Seng Index slipped as much as 0.8 per cent, before ending little changed after a post-Lunar New Year rally over two days.
The Shanghai Composite Index jumped 2 per cent as stocks in mainland China caught up with gains elsewhere during the five-day trading break. The MSCI China Index rallied 4.7 per cent while the S&P 500 Index gained 1.6 per cent when onshore trading paused from January 31 for Lunar New Year.
“During the Lunar New Year holiday, global risk assets recovered slightly, but volatility remains high” with a hawkish Federal Reserve, said Citic Securities in a note on Monday. “The volatility of the US stock market may continue to affect the global stock market.”
Longfor retreated 2.1 per cent, while Wharf REIC and Hang Lung Properties fell at least 1.4 per cent.
Despite Monday’s losses, the Hang Seng Index is still among the best performers across major world indices, with gains of about 4.9 per cent this year. Its rally last week had added US$142 billion of market value as investors expect further policy support in China to shore up stock prices.
Major markets in Asia retreated. Korean stocks lost at least 0.2 per cent, Japanese equities fell 0.7 per cent, while the Australian benchmark slipped 0.1 per cent.