Asia report: Markets mostly weaker, Alibaba handed huge antitrust fine

by | Apr 12, 2021

Most stock markets in Asia closed in negative territory on Monday, although Alibaba rocketed in Hong Kong even after it was hit with a massive fine by Chinese competition regulators.
In Japan, the Nikkei 225 was down 0.77% at 29,538.73, as the yen strengthened 0.28% against the dollar to last trade at JPY 109.36.

Technology conglomerate SoftBank Group rose 0.8%, while among the benchmark’s other major components, automation specialist Fanuc was down 1.76%, and fashion firm Fast Retailing lost 0.66%.

The broader Topix index lost 0.25% by the end of trading in Tokyo, closing at 1,954.59.

On the mainland, the Shanghai Composite lost 1.09% to 3,412.95, and the smaller, technology-heavy Shenzhen Composite slid 2.13% to 2,188.89.

South Korea’s Kospi was the region’s odd one out, managing gains of 0.12% to 3,135.59, while the Hang Seng Index in Hong Kong was 0.86% weaker at 28,453.28.

China technology behemoth Alibaba surged 6.51% in the special administrative region, despite the news that competition regulators in Beijing had handed down a CNY 18.23bn (£2.02bn) fine to the firm.

The company had been undergoing an investigation around alleged monopolistic behaviours in recent months.

“Asian markets kicked off the week on a bearish note, but Alibaba shares rallied in Hong Kong despite news that the company will pay a record antitrust fine of $2.8bn for having abused its market dominance over merchants and its competitors,” said Swissquote senior analyst Ipek Ozkardeskaya.

“The curious positive reaction was partly due to a relief that the case is finally over, partly due to Alibaba taking the news with ease and thanking the government.”

Seoul’s blue-chip technology stocks were in the red, with Samsung Electronics down 0.48% and SK Hynix 1.79% lower.

SK Innovation, meanwhile, soared 11.97% and LG Chem was 0.62% firmer, after LG Energy Solutions – a spin-off from the latter – reached a settlement with SK Innovation on a dispute over trade secrets.

Oil prices were higher at the end of the Asian day, with Brent crude last up 0.41% at $63.21 per barrel, and West Texas Intermediate rising 0.25% to $59.47.

In Australia, the S&P/ASX 200 lost 0.3% to 6,974.00, while across the Tasman Sea, New Zealand’s S&P/NZX 50 closed down 0.44% at 12,518.71.

Both of the down under dollars were stronger on the greenback, with the Aussie last ahead 0.09% at AUD 1.3113, and the Kiwi advancing 0.11% to NZD 1.4206.

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