Stocks are trading lower; SoftBank drops after earnings report

SINGAPORE — Asia-Pacific stocks were mixed on Tuesday on a quiet data day as markets continue to digest last week’s stellar U.S. jobs report.

Shares of SoftBank Group fell more than 6% after its Vision Fund reported a loss of 2.93 trillion Japanese yen ($21.68 billion) for the June quarter on Monday after the market closed. The technology-focused fund suffered as central banks raised interest rates to fight inflation.

The Nikkei 225 in Japan fell 0.87% and the Topix index fell 0.66%.

South Korea’s Kospi was around 0.13% higher, while the Kosdaq was nearly flat.

In Australia, the S&P/ASX 200 rose slightly.

Instead, markets reflected on Friday’s payrolls report, with a few other US banks announcing a 75 basis point hike in September.

Strickland Tapas

Economist, National Australia Bank

Hong Kong’s Hang Seng index rose nearly 1%, with heavyweight Alibaba climbing 2.53%.

Alibaba has applied to change its listing status in Hong Kong from primary to secondary, the company said in a statement posted to the Hong Kong Stock Exchange. The Hong Kong Stock Exchange acknowledged the request on August 8. The change will likely take effect before the end of 2022.

The tech giant first announced its plans for a dual primary listing in Hong Kong last month.

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Mainland China markets advanced. The Shanghai Composite gained 0.31% and the Shenzhen Component gained 0.195%.

Shares of smart transportation company Zhengzhou Tiamaes Technology soared nearly 20% after China’s transportation ministry released draft rules for self-driving vehicles that could lead to such vehicles being legalized on public roads.

Shares of ShenZhen RoadRover Technology jumped 10%, hitting its trading limit, according to Chinese media.

MSCI’s broadest Asia-Pacific ex-Japan equity index rose 0.31%.

According to Tapas Strickland, an economist at National Australia Bank, China’s continued military exercises around Taiwan have not had much of an impact on markets.

“Instead, markets reflected on Friday’s strong payrolls report, with a few more U.S. banks calling for a 75 basis point hike in September,” he said in a note Tuesday.

In economic data, investors are eagerly awaiting US Consumer Price Index data due Wednesday in the United States.

Markets in Singapore and India are closed for a public holiday on Tuesday.

Overnight in the US, the S&P 500 fell 0.12% to 4,140.06 and the Nasdaq Composite lost 0.1% to 12,644.46. The Dow Jones Industrial Average edged higher to close at 32,832.54.

Currencies and oil

The U.S. dollar index, which measures the currency against a basket of six foreign currencies, was at 106.345, slightly lower after its recent jump to near 107.

“Continued hawkish messages from the Fed and a strong CPI result may support the USD,” Kristina Clifton, an economist at Commonwealth Bank of Australia, wrote in a Tuesday morning note.

The Japanese yen was trading at 134.90 to the dollar after a sharp weakening following last week’s strong US jobs report.

The Australian dollar was at $0.6986. It briefly spiked above $0.70 overnight.

Oil futures settled nearly 2% higher in Monday’s session. US West Texas Intermediate futures were down 0.15% on Tuesday in Asia at $90.62 a barrel, while Brent crude was down 0.14% at $96.50 a barrel.

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