The main Asia-Pacific markets driven by energy and technology losses
Major Asia-Pacific markets in Japan, Australia and Hong Kong opened the week lower as energy and tech stocks emerged as the region’s main drag on Monday.
Hong Kong’s Hang Seng Index fell 0.4% to 24,962.11 at lunch break on Monday. The Hang Seng Mainland Oil & Gas index fell 2.5% at noon as oil prices hit their lowest in seven weeks amid oversupply and demand concerns as a result of the resurgence of waves of Covid-19 in Europe.
The Hang Seng TECH index fell 0.8% on Monday after Chinese tech companies, including Alibaba Group and Baidu, were fined by the regulator for monopoly practices.
Japan announced record stimulus package
In Japan, the benchmark Nikkei 225 rose 0.1% on Monday afternoon despite the government’s announcement of a record JPY56trn ($ 490 billion) stimulus package last week to help its recovery of Covid-19.
On Monday, the Topix-17 Energy Resources sector index fell 2% and the Topix-17 Electric Appliances & PRE Instrument sector index slipped 0.3%.
Oil and gas explorer INPEX was the big loser in Tokyo on Monday, down 4.6%. Auto shares were also weak on Monday, with automaker Nissan Motor and ancillary auto companies including NSK and Yokohama Rubber in the top 10 intraday losers list.
“Reduced appetite for risk”
Elsewhere, the Australian S & P / ASX 200 index fell 0.5% on Monday, with the finance, technology and energy sectors losing more than 1% each.
The S & P / ASX 200 Energy slipped 1.5% as Beach Energy fell more than 4%, while Oil Search and Santos fell about 2% each on Monday afternoon. Meanwhile, all of the “Big Four” are trading in the red on Monday, with Westpac Banking leading losses falling more than 2%.
“There isn’t just one factor driving the markets, but a lot, although most of them are pointing in the same direction – a reduction in risk appetite,” said Robert Carnell, manager. regional research at ING Asia-Pacific, citing the resurgence of Covid-19 cases in Europe. , lower US rates earlier than expected, falling oil prices and geopolitical issues.
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The main difference between CFD trading and trading assets, such as commodities and stocks, is that you don’t own the underlying asset when you trade a CFD.
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