Hong Kong vaults, Tokyo, Shanghai retreat
Hong Kong stocks ended Thursday’s choppy session higher, with Chinese online major Tencent Holdings leading a strong rally in the technology sector.
In Tokyo, the Nikkei 225 index reversed and lost 194.48 points, or 1%, to 19,570.24.
The yen dipped against the U.S. dollar, with the greenback buying ¥119.21, compared with ¥119.16 on Wednesday.
In Hong Kong, the Hang Seng Index gained 37.27 points, or 0.1%, to 27,286.55, after a day of seesaw trading
The technology sector surged. Index heavyweight Tencent Holdings Ltd. climbed 2.9%, as its first-quarter net profit increased by a forecast-beating 7% from a year ago. J.P. Morgan, and several other banks and brokers hold an overweight rating on the stock.
The technology sector may also get a boost from reports that China could launch the Shenzhen-Hong Kong Stock Connect as early as in the third quarter of this year.
That would allow investors to buy shares directly in both markets. Shenzhen markets, which are dominated by small-cap and technology shares, have surged this week after Premier Li Keqiang pledged to support the Internet industry and boost entrepreneurship.
In Hong Kong, online game developer Forgame Holdings Ltd. soared 14.5%, while rival Boyaa International Interactive Ltd. leapt 9%. Baioo Family Interactive Ltd. spiked 7.1%, software Kingdee International Software Group Co. Ltd. jumped 6.1%, and NetDragon Websoft, Inc popped 5.9% higher.
However, state-owned telecommunications operators recorded declines after the State Council — China’s cabinet — urged telecom companies to charge less for Internet service while also improving connection speeds. China Telecom Corp. slid 3.2%, and China Unicom Hong Kong Ltd. lost 0.9%. Bigger rival China Mobile Ltd. trimmed earlier losses to close flat, halting a three-day losing streak.
CHINA
The Shanghai CSI 300 settled 18.27 points, or 0.4%, to 4,700.78
Among other market movers, Cnooc Ltd., China’s largest offshore oil producer, shed 2.4% on the back of falling crude-oil prices. State-owned energy giant PetroChina Co. Ltd. dropped 0.5%.
In other markets
In Korea, the Kospi index recovered 6.17 points, or 0.3%, to 2,120.33
In Taiwan, the Taiex collapsed 113.28 points, or 1.2%, to 9,610.83
In Singapore, the Straits Times index inched up 2.61 points, or 0.1%, to 3,455.78
In New Zealand, the NZX 50 slid 13.36 points, or 0.2%, to 5,738.40
In Australia, the S&P/ASX 200 shaved off 18.58 points, or 0.3%, to 5,696.57
