{"id":36557,"date":"2023-11-22T17:20:06","date_gmt":"2023-11-22T17:20:06","guid":{"rendered":"https:\/\/microloannexus.com\/investing\/nvidia-weighs-on-asia-tech-stocks-as-hong-kong-internet-rebounds\/"},"modified":"2023-11-22T17:20:07","modified_gmt":"2023-11-22T17:20:07","slug":"nvidia-weighs-on-asia-tech-stocks-as-hong-kong-internet-rebounds","status":"publish","type":"post","link":"https:\/\/microloannexus.com\/?p=36557","title":{"rendered":"Nvidia Weighs On Asia Tech Stocks As Hong Kong Internet Rebounds"},"content":{"rendered":"
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Key News<\/h3>\n

Asian equity markets were mixed on light volumes as Nvidia\u2019s earnings results and the company’s mention of US government restrictions on chip exports weighed on tech stocks in the region.<\/p>\n

One should assume that the stockpiling of chips has been occurring, which could diminish future sales in my opinion. Amazing the non-reaction\/yawn for Nvidia on US government restrictions while Alibaba\u2019s mention of chip restrictions pummeled the stock.<\/p>\n

Trip.com\u2019s US ADR fell -10.61% yesterday after releasing Q3 financial results in line with expectations once the Hong Kong market had closed. Given the same Q3 financial results, Trip.com\u2019s HK listing fell -4.06% today. I thought Trip.com\u2019s results were good as Q3 2023 adjusted net income increased to RMB 4.9 billion ($673 million) from RMB 1 billion in Q3 2022.<\/p>\n

Baidu\u2019s US ADR rose +1.91% yesterday, while its HK listing rose +2.75% today. The performance disparity is a decent sentiment proxy, though US-China diplomatic relations improving should help sentiment as Mainland China approved the Broadcom VMware yesterday. Yesterday\u2019s market action in US-listed China ADRs was a head-scratcher as they fell for no reason other than US stocks were off.<\/p>\n

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There was a fair amount of chatter that Jack Ma\u2019s foundation might sell a small amount of Alibaba shares, though the rumors appear to be false.<\/p>\n

Real estate was the top performer in Hong Kong again, gaining +0.5% as the government\u2019s \u201cwhite list\u201d of fifty real estate developers who will receive financing support gained attention. US dollar-denominated high-yield bonds rallied (again) in response, but investor interest remains non-existent, which likely means the rally will continue. It is feasible that we will look back in a year and say, \u201cWhat an opportunity\u201d! In full disclosure, I am long the space.<\/p>\n

Hong Kong\u2019s most heavily traded were Tencent -0.12%, Alibaba HK +1.12%, Xiaomi -1.69%, Meituan +0.81%, and Kuiashou +2.91%. Mainland investors bought a healthy $663 million of Hong Kong-listed stocks and ETFs. Mainland China was off as foreign investors sold -$494 million of Mainland stocks via Northbound Stock Connect. Both the Shanghai and Shenzhen Composite appear to be taking a breather after coming off lows in mid\/late October. Catalysts coming? I\u2019ve not seen a December date set for the Central Economic Work Conference, a significant economic meeting, though it is coming along with a potential bank reserve requirement ratio cut. Mainland China\u2019s slow, incremental economic rebound has weighed on sentiment, though the economy is improving. A grind higher would be preferred to the meteoric rise post Zero COVID policy removal. The US dollar firmed versus the renminbi and Asia dollar index.<\/p>\n

The Hang Seng and Hang Seng Tech were closed flat at 0.0% and down -0.18% on volume -24.35% from yesterday, which is 74% of the 1-year average. 168 stocks advanced, while 292 declined. Main Board short turnover increased by +5.74% from yesterday, which is 103% of the 1-year average, as 23% of turnover was short turnover (remember Hong Kong short turnover includes ETF short volume, which is driven by market makers\u2019 ETF hedging). The value factor and large caps outpaced the growth factor and small caps. The top sectors were real estate +0.5%, communication +0.46%, and energy +0.39%, while tech -1.76%, healthcare -1.52%, and industrials -0.92%. The top sub-sectors were food\/staples, telecom, and real estate, while semis, technical hardware, and pharmaceuticals were the worst. Southbound Stock Connect volumes were moderate as Mainland investors bought $663 million of Hong Kong stocks and ETFs.<\/p>\n

Shanghai, Shenzhen, and STAR Board fell -0.79%, -1.2%, and -1.6% on volume -12.2% from yesterday, which is 100% of the 1-year average. 926 stocks advanced, while 3,938 declined. The value factor and large caps outpaced the growth factor and small caps. All sectors were negative, with tech -2.05%, discretionary -1.87%, and materials -1.75%. The top sub-sectors were cultural media, telecom, and soft drinks, while motorcycles, communication equipment, and power generation equipment were the worst. Northbound Stock Connect volumes were light as foreign investors sold -$494 million of Mainland stocks. CNY and the Asia dollar index eased versus the US dollar. Treasury bonds were sold along with copper while steel gained.<\/p>\n

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Last Night\u2019s Performance<\/h3>\n

Last Night\u2019s Exchange Rates, Prices, & Yields<\/h3>\n