April 4, 2022
A possible breakthrough in the audit impasse between China and the United States boosted Baidu and Weibo, while Japan’s Nikkei edged higher on gains on Wall Street
Major Asian markets started the week strong, with tech companies leading the charge in Hong Kong and Tokyo, trailing gains on Wall Street.
The gains were helped by a further drop in oil prices after the International Energy Agency, made up of 31 countries, agreed to tap its vast reserves to compensate for the suppression of Russian exports, while the start of A ceasefire in Yemen has eased concerns over supplies to the region.
Hong Kong stocks hit a month-long high on Monday, led by dual-listed Hong Kong-U.S. firms, after a weekend statement from China’s securities watchdog calmed investors’ fears that these companies will be forced to delist in the United States.
Also on AF: China sends army and medics to aid Shanghai Covid crackdown
The Hang Seng Index closed 2.1% higher at 22,502.31 points, its highest close since March 1, while China’s Hong Kong business index gained 3.1% to 7,770.98.
Markets in mainland China were closed for a holiday, and markets in Hong Kong and the mainland will also be closed on Tuesday.
China Securities Regulatory Commission, on Saturday, proposed to revise confidentiality rules regarding offshore listings, removing a legal obstacle to Sino-U.S. cooperation in audit control. Instead, the responsibility to protect state secrets would fall on Chinese companies.
Baidu ended the day up 7.77%, Yum China gained 5.33% and Weibo added 3.4%. The Hang Seng Technology Index jumped 5.43%.
All three had been designated by the U.S. Securities and Exchange Commission as likely to be debarred from the United States under rules requiring the U.S. accounting regulator to have access to audit working papers of all listed companies. in the USA.
“Investor concerns over the delisting of dual-listed Chinese stocks in the U.S. have been reduced, which is the most important factor for stock market performance today,” said Kenny Ng, securities strategist. at China Everbright Securities International.
Hang Seng Property Index
“Real estate stocks on the mainland have also continued to perform well, which is linked to recent measures introduced by some local governments on the mainland. The effectiveness of these measures will depend on the significant increase in sales figures in the future,” added Ng.
The Hang Seng Mainland real estate index rose 6.38%, with developer Country Garden, up 8.36%, leading the way. The Hang Seng Property Index gained 3.05%.
Country Garden’s property management unit, Country Garden Services Holdings Co Ltd, which rose 16.16%, was the biggest gainer in the Hang Seng.
Japan’s Nikkei ended higher on Monday in a range-bound trading session, tracking gains in Wall Street and other Asian stock markets, although losses in chip-related stocks weighed on the index.
The Nikkei stock average rose 0.25% to close at 27,736.47, after falling 0.3% earlier in the session. The broader Topix gained 0.48% to 1,953.63.
“The Japanese market was supported by gains in the US market over the weekend, while US futures maintained momentum,” said Yutaka Miura, senior technical analyst at Mizuho Securities.
Indian stocks also rose with Mumbai’s Nifty 50 index up 2.17%, or 382.95 points, to close at 18,053.40.
Key figures around 08:10 GMT
Tokyo – Nikkei 225 > UP 0.3% to 27,736.47 (closing)
Hong Kong – Hang Seng Index > UP 2.1% to 22,502.31 (closing)
Shanghai – Composite > Closed
London – FTSE 100 > UP 0.3% to 7,557.60
North Sea Brent > UP 1.1% to $105.51 a barrel
West Texas Intermediate > UP 1.1% to $100.33 a barrel
New York – Dow > UP 0.4% to 34,818.27 (close Friday)
- Reuters with additional editing by Sean O’Meara