The Hang Seng and the Shanghai Shenzhen Stock indices suffered losses of 0.6% and 1%, respectively. They were extending their losing run into a third consecutive trading day.
The Shanghai Composite index
The Shanghai Composite index is the more widely followed of the two indices. As a direct consequence of the decision made by the government. To indefinitely postpone publishing prominent economic figures related to the 3rd quarter.
The nation’s economy’s uncertainty has escalated significantly over the last week. In addition, the eagerly anticipated trade numbers for the September period weren’t released. Instead, by the Border Protection and Customs Enforcement Bureau on Friday, as was expected.
The Chinese Communist Party’s 20th National Congress was held this past Sunday, has mentioned as the reason for the deferral. However, the authorities have not disclosed any information about when the information would be made accessible to the public.
Investors have also found themselves in a state of anxiety due to Congress. Since President Xi Jinping said the government has no intentions to change its zero-COVID position. Motivation has not improved despite promises to drive the economy.
On Wednesday, traders kept selling off Chinese tech shares as markets remained apprehensive about additional limitations imposed by the U.S. To block chip exports to Chinese enterprises. These limits included a ban on the shipping of chips to Chinese businesses.
This week, a report emerged that suggested Apple intended to quit receiving chip supplies from a Chinese supplier. This story raised more significant worries about the move, and Apple responded by denying the story’s accuracy.
Other markets that are technologically intertwined with China have also been going through protracted periods of downturn. For example, the index of Hang Seng in Hk had a decline of 1.7%, pushing it perilously near its point of lowest value in the last 11 years.
The exchange provider HKEX lost 1% of its value after reporting a 30% decline in its earnings for the 3rd quarter. It contributed to the overall negative sentiment.
Both the Taiwan Composite index and the KOSPI benchmark in South Korea had a fall of 1%. The KOSPI indicator in South Korea is seeing a decrease of 0.4%. The Chinese market has a significant amount of weighting in all of these indexes.
Successful Overnight Session For Wall Street
Wall Street had a successful overnight session due to a run of promising earnings announcements. Other Asian economies soon followed and saw some slight gains as a result.
However, regional advancements got hindered by hawkish remarks made by numerous Fed Reserve executives on the future outlook of tax rates in the U.S. These statements cast a negative light on the economic outlook for the United States.
Both the Nikkei 225 average in Japan and the Nifty index in Delhi experienced increases of 0.5% and 0.6%, respectively, today. Malaysian shares led the rising trend that was evident across Southeast Asian economies, which rose by 0.9% and were at the vanguard of the movement.
This year, regional markets have seen considerable losses. Mainly as a direct consequence of investors’ reduced demand for risk-driven investments. Which was caused by the more stringent monetary conditions.