The Asian stock markets on Tuesday were a mixed bag despite a rally overnight in Wall Street technology stocks.
After US actions, stocks in China and Hong Kong fall
The Shanghai Composite Index of China and the blue-chip CSI 300 had a volatile trading session on Tuesday.
The United States has listed Tencent Holdings Ltd. as well as Contemporary Amperex Technology Co. Ltd. as having alleged links with the Chinese military.
Tencent shares listed in Hong Kong fell as much as 7 percent in the early trading, and its shares traded in US dropped 8% over-the counter.
Tencent, parent company of WeChat stated that the inclusion was a “clear mistake” and stressed, “We’re not a supplier or military company.” This listing does not affect our business, unlike sanctions or export control.
CATL’s Shenzhen listed shares, which are the largest battery manufacturer for electric vehicles in the world, fell over 5%.
It also dismissed this designation, claiming that “it is not involved in military activities”.
This move was a further escalation of geopolitical tensions and contributed to the unease about the performance of the yuan.
Hong Kong’s Hang Seng Index fell over 1.5 percent, reflecting investor concern over the implications of US Sanctions on Chinese Companies.
Nikkei, the Japanese stock exchange makes a return
Nikkei, the Japanese stock market index, made a powerful comeback on the exchanges. It closed more than 1% below its previous closing price for the first day of trading in 2025.
Nikkei Average jumped 2.3%, as yen dropped to its lowest level against the dollar since July 2024.
Weaker currency helped exporters, giving a boost to market.
Asian markets
The South Korean Kospi Average rose over 1% to over 2,500, thanks in part to strong earnings by Foxconn. Foxconn is the largest Apple iPhone contract manufacturer worldwide.
It is the first KOSPI to surpass the 2,500 level since the 16th of December.
More than two days in a row, foreign investors recorded net purchases. This streak was last observed 83 days earlier on October 14-15.
This company’s record revenue for the fourth quarter exceeded market expectations, and lifted sentiment in tech-related industries.
The S&P/ASX 200 index in Australia gained 0.3% due to modest gains made by technology shares and financial stocks. The mining industry’s declines, however, tempered the broader gains.
Wall Street tech rally Monday
The major averages closed with a mixed result. Stocks rose sharply in the morning but fell throughout the day.
The Nasdaq, which is dominated by tech, rose 243.30, or 1.2% to 19,864.90. Meanwhile, the S&P500 added 32.91, or 0.6% to 5,975.38.
The Dow Jones Industrial Average fell 25.57, or 0.1% to 42,706.56.
Following Foxconn’s announcement of record revenue for the fourth quarter, fueled by demand for AI servers, tech stocks led an early rally.
Nvidia’s Foxconn assembly partner rose by 3.4% while Micron soared 10.5%.
The market sentiment improved as well after the Washington Post reported that President-elect Donald Trump might scale back on his tariff plans.
The post Hang Seng and China’s CSI 300 fall after US action, Japan’s Nikkei soars more than 2% could be updated as new developments unfold.
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