Asian shares down as Alibaba's slide reignites China worries
Skip to main content
  • Home
  • Economy
  • Stocks
  • Analysis
  • World+Biz
  • Sports
  • Features
  • Epaper
  • More
    • Subscribe
    • COVID-19
    • Bangladesh
    • Splash
    • Videos
    • Games
    • Long Read
    • Infograph
    • Interviews
    • Offbeat
    • Thoughts
    • Podcast
    • Quiz
    • Tech
    • Archive
    • Trial By Trivia
    • Magazine
    • Supplement
  • বাংলা
The Business Standard

Thursday
July 07, 2022

Sign In
Subscribe
  • Home
  • Economy
  • Stocks
  • Analysis
  • World+Biz
  • Sports
  • Features
  • Epaper
  • More
    • Subscribe
    • COVID-19
    • Bangladesh
    • Splash
    • Videos
    • Games
    • Long Read
    • Infograph
    • Interviews
    • Offbeat
    • Thoughts
    • Podcast
    • Quiz
    • Tech
    • Archive
    • Trial By Trivia
    • Magazine
    • Supplement
  • বাংলা
THURSDAY, JULY 07, 2022
Asian shares down as Alibaba's slide reignites China worries

Global Economy

Reuters
19 November, 2021, 09:10 am
Last modified: 19 November, 2021, 09:14 am

Related News

  • Global markets steady but recession fears remain
  • Wall Street says a recession is coming. Consumers say it's already here
  • Stocks slide, dollar shines as recession fears deepen
  • The 1970s weren’t what you think
  • Asian shares end quarter in sombre mood, dollar on high

Asian shares down as Alibaba's slide reignites China worries

Chinese economic data over recent months have also underlined a loss of growth momentum, with the outlook over the next 12 months more subdued than at the start of the year

Reuters
19 November, 2021, 09:10 am
Last modified: 19 November, 2021, 09:14 am
People are reflected on a glass in front of a large screen showing stock prices at the Tokyo Stock Exchange after market opens in Tokyo, Japan October 2, 2020. Photo: Reuters
People are reflected on a glass in front of a large screen showing stock prices at the Tokyo Stock Exchange after market opens in Tokyo, Japan October 2, 2020. Photo: Reuters

Asian shares fell on Friday as disappointing earnings from Chinese e-commerce giant Alibaba heightened worries about Beijing's broad regulatory crackdown and slowing growth in the world's second-biggest economy.

That saw the region lag a solid Wall Street performance overnight, with MSCI's broadest index of Asia-Pacific shares outside Japan off 0.44% and set for a weekly decline of 1.2%.

Tokyo's Nikkei outperformed, however, rising 0.40% after Japanese Prime Minister Fumio Kishida announced a fresh stimulus package with spending worth around 56 trillion yen ($490 billion).

Overnight, the S&P 500 and Nasdaq notched record closing highs, boosted by upbeat corporate earnings news from companies including Nvidia.

But the tone was more subdued in Asia, with the Hong Kong benchmark down sharply 1.5%, dragged down by index heavyweight Alibaba. The Chinese e-commerce firm's shares tumbled over 10% after its second-quarter results missed expectations due to slowing consumption, increasing competition and a regulatory crackdown.

The decline reflects slowing growth in China this year, analysts said, while a broad months-long regulatory crackdown by Beijing across many sectors including property and technology have weighed on investor sentiment more generally.

Chinese economic data over recent months have also underlined a loss of growth momentum, with the outlook over the next 12 months more subdued than at the start of the year.

"Following substantial slowdown of National Bureau of Statistics retail data for the past two months, it is not surprising to us that (Alibaba) printed a missed quarter," said Citi analysts in a note, lowering their target price on the stock.

Turmoil in China's property sector, which is struggling with a heavy debt burden and a squeeze on liquidity amid Beijing's crackdown, also remain a drag on broad global sentiment.

Hong Kong shares of Country Garden Services Holding , the property management unit of Chinese developer Country Garden, plunged 16% after it raised HK$8 billion ($1 billion) in a share sale.

Chinese blue chips were flat, as was much of the region.

Elsewhere, major currencies were largely quiet with the dollar sitting just below a 16-month high hit against a basket of its peers earlier in the week.

The yen hardly reacted to the government's stimulus news, and was headed for a small weekly loss, though at 114.27 per dollar it has also recovered since touching an almost five-year low of 114.97 a few days ago.

In emerging markets, a gathering currency crisis in Turkey has driven the lira to a record low after the central bank - facing political pressure - cut rates despite inflation running near 20%. US benchmark Treasury yields were steady at 1.5924%.

"The UST market is consolidating within recent ranges is awaiting new catalysts to shift valuations. ... there is a lot already in the price and as a result, progress toward higher yields is likely to be slow and defined by momentum shifts and sentiment swings," said analysts at Westpac in a note.

Oil prices were steady in early Asia. US crude was flat at $79 a barrel. Brent crude rose 0.06% to $81.33 per barrel.

On Thursday, oil fell to six-week lows after Reuters reported, citing sources, that the Biden administration asked some of the world's largest oil consuming nations - including China, India and Japan - to consider releasing crude stockpiles in a coordinated effort to lower global energy prices.

Spot gold rose 0.18%.

World+Biz / South Asia

Asian Stock Market / Global Market / World economy

Comments

While most comments will be posted if they are on-topic and not abusive, moderation decisions are subjective. Published comments are readers’ own views and The Business Standard does not endorse any of the readers’ comments.

Top Stories

  • BPC looks for $2b as fuel stock depletes fast
    BPC looks for $2b as fuel stock depletes fast
  • Photo: Unicef
    Nearly 10% of global population affected by hunger last year: UN
  • Call money rate hits 5.48% amid rising cash demand ahead of Eid
    Call money rate hits 5.48% amid rising cash demand ahead of Eid

MOST VIEWED

  • Photo: Unicef
    Nearly 10% of global population affected by hunger last year: UN
  • Representation of the virtual currency Bitcoin is seen on a motherboard in this picture illustration taken April 24, 2020. REUTERS/Dado Ruvic/Illustration/File Photo
    India's cryptocurrency industry reels as new tax hammers trading
  • The Gap logo is seen on the front of the company's store in Paris, France, July 1, 2021. REUTERS/Sarah Meyssonnier/File Photo
    Reliance to partner with Gap for India stores
  • Skyscrapers in The City of London financial district are seen in London, Britain, September 14, 2020. Photo: Reuters
    UK markets brace for prolonged political uncertainty
  • An exterior view shows a new pumping station of the Caspian Pipeline Consortium (CPC) near the city of Atyrau, Kazakhstan on 12 October 2017. Photo: Reuters
    Russian court orders one of world’s largest pipelines to suspend operations
  • The government controls traffic growth with a series of quotas, taxes and duties that can push up the cost of a car.Photographer: Nicky Loh/Bloomberg
    Singapore's sky-high car prices are warning for global cities

Related News

  • Global markets steady but recession fears remain
  • Wall Street says a recession is coming. Consumers say it's already here
  • Stocks slide, dollar shines as recession fears deepen
  • The 1970s weren’t what you think
  • Asian shares end quarter in sombre mood, dollar on high

Features

The sea beach in Kuakata. Photo: Syed Mehedy Hasan

Five places in Southern Bangladesh you could visit via Padma Bridge

14h | Explorer
Genex Infosys Limited is the country's largest call centre with more than 2,000 seats and full-set equipment. Photo: Courtesy

How domestic demand made Genex Infosys a BPO industry leader

14h | Panorama
The OPEC+ group of 23 oil-exporting countries met virtually on Thursday. Photo: Bloomberg

OPEC+ did its job, but don’t expect it to disappear

1d | Panorama
Mirza Abdul Kader Sardar with AK Fazlul Haque, Chief Minister of Bengal, at Haque's reception at the Lion Cinema, Dhaka, 1941. Photo: Collected

Panchayats: Where tradition clings to survival

1d | Panorama

More Videos from TBS

Behind the story of 'Aske Amar Mon Bhalo Nei'

Behind the story of 'Aske Amar Mon Bhalo Nei'

3h | Videos
Is Donbas Putin’s next target?

Is Donbas Putin’s next target?

6h | Videos
Hajj Journey: it took more than one year to complete the Hajj

Hajj Journey: it took more than one year to complete the Hajj

7h | Videos
Photo: TBS

Cristiano Ronaldo looking for a new challenge

12h | Videos

Most Read

1
Photo: Collected
Africa

Uganda discovers gold deposits worth 12 trillion USD

2
TBS Illustration
Education

Universities may launch online classes again after Eid

3
Area-wise load shedding schedule will be announced: PM
Bangladesh

Area-wise load shedding schedule will be announced: PM

4
Padma Bridge opens up investment spree in south
Industry

Padma Bridge opens up investment spree in south

5
Build Dhaka East-West Elevated Expressway, relocate kitchen markets: PM
Bangladesh

Build Dhaka East-West Elevated Expressway, relocate kitchen markets: PM

6
File Photo: BSS
Energy

India pulls out of LoC funding for part of Rooppur power transmission work

EMAIL US
contact@tbsnews.net
FOLLOW US
WHATSAPP
+880 1847416158
The Business Standard
  • About Us
  • Contact us
  • Sitemap
  • Privacy Policy
  • Comment Policy
Copyright © 2022
The Business Standard All rights reserved
Technical Partner: RSI Lab
BENEATH THE SURFACE
A customer checks a knife at a blacksmith’s shop at the capital’s Karwan Bazar. Knives and other Qurbani tools are in huge demand as the country prepares to celebrate Eid-Ul-Azha. Photo: Rajib Dhar

Contact Us

The Business Standard

Main Office -4/A, Eskaton Garden, Dhaka- 1000

Phone: +8801847 416158 - 59

Send Opinion articles to - oped.tbs@gmail.com

For advertisement- sales@tbsnews.net