Reuters, HONG KONG, July 6 – Most Asian stock markets opened slightly higher on Tuesday, despite lingering concerns about the future regulation of China’s powerhouse technology industry and ahead of a critical decision by Australia’s central bank on its quantitative easing program. Because the United States’ markets were closed on Monday for the Fourth of July vacation, the Asian area was left without a substantial lead when trading resumed on Tuesday. The MSCI Asia-Pacific stock index outside of Japan (.MIAPJ0000PUS) was up 0.05 percent. The Hang Seng Index (.HSI) in Hong Kong was down 0.7 percent, while the CSI300 (.CSI300) in China was down roughly 0.3 percent. The Nikkei (.N225) in Japan was up 0.45%, while the S&P ASX200 (.AXJO) was up 0.21 percent. The Kospi 200 Index (.KS200) in South Korea climbed 0.5 percent in early session. The Cyberspace Administration of China (CAC) ordered a probe into Didi Global Holdings (DIDI.N) only days after it floated on the New York Stock Exchange, putting Chinese technology stocks under the spotlight again on Tuesday. find out more “There is still residual uncertainty from China’s tech businesses, and they are significant in the Asian market, so it might be a cloud for market mood,” Tai Hui, chief Asia market strategist at JPMorgan Asset Management, said. “The tech industry is really important in Asia, and we aren’t going to have a lot of clarity on regulatory adjustments in China for the next several weeks or months, and (that) will be a major market driver.” Xiaomi Corp (1810.HK) mandated 12 banks on Tuesday to lead a potential US dollar debt issue, which could put investor enthusiasm for Chinese tech companies to the test. find out more Investors in Australia are looking at the prospect of additional mergers and acquisitions after a pension fund consortium made a $16.7 billion proposal for Sydney Airport Holdings Ltd (SYD.AX) on Monday. find out more Karen Jorritsma, head of equities at RBC Capital Markets in Sydney, told Reuters, “Sentiment appears to have almost gone past the (economic) reopening trade and into outlook for corporate earnings that are coming up in August.” “The ‘confession season’ for earnings has been astonishingly favorable, and with balance sheets in such terrific shape, the tide is turning to M&A possibility.” Investors around the world are eagerly awaiting the release of the Federal Open Markets Committee minutes for June from the United States Federal Reserve, which will provide insight into whether ongoing emergency stimulus measures will begin to be curtailed. Despite a surge in the Brent crude price to above $77 a barrel, the highest level since October 2018, many European markets were bullish overnight. find out more The increase comes after OPEC+ ministers called a halt to talks on Monday, following a clash last week in which the United Arab Emirates rejected a planned eight-month extension to output limitations, implying that no deal to enhance supply had been reached. The next meeting of OPEC+ countries – the Organization of Petroleum Exporting Countries (OPEC) and allied producers, including Russia – has yet to be scheduled, although sources told Reuters that new conversations might start in the coming days. Increased oil costs are fueling fears that a greater global inflation rate could sabotage the post-coronavirus pandemic recovery that is already underway in certain major international economies. The Reserve Bank of Australia is expected to maintain its 0.1 percent official cash rate target, but has hinted that it may disclose its conclusions on the larger quantitative easing program, which is slated to conclude in September. Economists believe the RBA would only extend its 0.1 percent three-year bond yield goal to the April 2024 bond, rather than the November 2024 issue. Scott Murdoch contributed reporting from Hong Kong, and Kenneth Maxwell edited the piece. The Thomson Reuters Trust Principles are our standards./n
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