The flags of China and Hong Kong flutter as the Hang Seng Index screens display outside the Exchange Square complex, which houses the Hong Kong Stock Exchange, on January 21, 2021 in Hong Kong, China.

Zhang Wei | China News Service via Getty Images

Asia-Pacific shares fell on Monday, with Hong Kong’s Hang Seng leading losses as city-listed Chinese chip stocks fell following new US export rules.

The largest chipmaker in China International Semiconductor Manufacturing Corporation fell as much as 5.23%, and Semiconductor Hua Hong fell more than 10% and Shanghai Fudan Microelectronics Company fell as low as 24.6% during morning trading.

The wider Hang Seng Index was 2.95% lower at 17,216.66, while the Hang Seng Tech index was down 3.98%. HSI heavyweight Meituan fell 6.71%.

In mainland China, the Shanghai Composite lost 1.66% to 2,974.15 on its first day of trading after the Golden Week holiday, while the Shenzhen component fell 2.38% to 10,522.12. The CSI 300 index, which tracks the biggest stocks on the mainland, slipped 2.21% to 3,720.94.

The IS S&P/ASX 200 1.62% lower at 6,667.80. MSCI’s broadest index of Asia-Pacific shares outside Japan traded 1.88% lower. Markets in Japan, South Korea, Taiwan and Malaysia are closed for a holiday on Monday.

Later this week, the Bank of Korea will announce its benchmark interest rate decision, Singapore is set to announce its third quarter GDP estimate and China releases inflation data.

Taiwan Semiconductor Manufacturing Company and the Japanese Fast Retail they will report earnings and the US will release inflation data for September.

On Friday in the United States, major stock indexes fell more than 2% after data showed the unemployment rate fell in September, fueling fears that the Federal Reserve would continue to raise rates aggressively.

Source link