Hong Kong Stocks Rise on U.S. Sanctions on SMIC

Hong Kong-listed shares of Chinese chipmaker SMIC fell on Monday following reports that the U.S. has imposed restrictions on exports to the firm due to risks of military use.

In Japan, the Nikkei 225 zoomed 307 points, or 1.3%, to 23,511.62.

The Japanese yen traded at 105.34 per U.S. dollar following an earlier low of 105.68 against the greenback.

In Hong Kong, the Hang Seng restocked 240.63 points, or 1%, to 23,476.05.

Shares of SMIC listed in the city fell 3.88% on Monday, against a broader rise in the sector as the Hang Seng Tech index gained 0.86% on the day.

The reported move by the U.S. government would hurt China’s plans to boost its domestic semiconductor industry. Tension between Washington and Beijing has accelerated China’s plans to boost its own chips industry.

Meanwhile, shares of China Evergrande Group in Hong Kong soared 20.61%. It came after the Shenzhen-based property developer, announced Friday that its “operations remain stable and healthy while financial conditions remain sound.”

Evergrande shares in Hong Kong had seen a Friday plunge on the back of reports on a leaked document that showed the Chinese property developer was seeking government support to approve a restructuring plan, warning of an impending cash crunch.

South Korea’s Kospi rose with entertainment shares in the country jumping after K-pop sensation BTS’ label Big Hit Entertainment priced its anticipated IPO at the top end of the range.

The Australian dollar changed hands at $0.7048 after sliding from levels above $0.72 last week.

CHINA

The CSI 300 gained 11.89 points, or 0.3%, to 4,581.91.

China’s industrial profits rose 19.1% in August, the country’s National Bureau of Statistics announced over the weekend. Chinese economic data has been watched by investors for signs of the country’s continued recovery from the coronavirus pandemic.

In other markets

In Singapore, the Straits Times Index added 10.73 points, or 0.4%, to 2.483.01.

In Korea, the Kospi advanced 29.29 points, or 1.3%, to 2,308.08.

In Taiwan, the Taiex index jumped 229.85 points, or 1.9%, to 12,462.76.

In New Zealand, the NZX 50 eked up 5.2 points to 11,802.29.

In Australia, the ASX 200 lost 12.61 points, or 0.2%, to 5,952.32.