Hong Kong leads Asian markets higher on Alibaba boost

Hong Kong leads Asian markets higher on Alibaba boost

Alibaba is one of China's most prominent tech giants, with operations spanning cloud computing, e-commerce, logistics, media and entertainment, and artificial intelligence
Alibaba is one of China's most prominent tech giants, with operations spanning cloud computing, e-commerce, logistics, media and entertainment, and artificial intelligence. Photo: STR / AFP/File
Source: AFP

PAY ATTENTION: Enjoy reading our stories? Join YEN.com.gh's Telegram channel for more!

Asian stocks were broadly up on Wednesday to buck losses on Wall Street, led by massive gains for Chinese tech behemoth Alibaba after it announced it would split into six business groups.

The Hangzhou-based firm said the changes were intended to "unlock shareholder value and foster market competitiveness".

Alibaba is one of China's most prominent tech firms, with operations spanning cloud computing, e-commerce, logistics, media and entertainment, and artificial intelligence.

By 10 am Wednesday (0200 GMT), its Hong Kong-listed shares were up by nearly 14 percent. Its New York-listed shares were also up in the previous session.

"Investors could get hyped on the positive side in the short term," said Willer Chen, senior research analyst at Forsyth Barr Asia.

"Alibaba's shakeup plan may also lead investors to think of the potential for other tech firms like Tencent to follow suit."

Read also

Asian shares up as bank crisis fears ease

PAY ATTENTION: Click “See First” under the “Following” tab to see YEN.com.gh News on your News Feed!

Tencent and Baidu also advanced, as did Tokyo-listed Softbank, which owns a large stake in Alibaba.

By mid-morning, the Hang Seng Index was up by more than two percent.

In Tokyo, the Nikkei 225 was up by just under half a percentage point, while Taipei and Bangkok also rose.

Shanghai and Sydney posted small losses.

Following a flattish day on European bourses Tuesday, US stock indices finished modestly lower, shrugging off a better-than-expected consumer confidence reading.

The closely watched consumer confidence index increased in March to 104.2 from 103.4 last month, The Conference Board said in a statement.

"While consumers feel a bit more confident about what's ahead, they are slightly less optimistic about the current landscape," said Ataman Ozyildirim, senior director for economics at The Conference Board.

All three major US indices declined, with the S&P 500 losing 0.2 percent.

Read also

European markets rebound, Asia mixed as banking fears linger

The gains followed last week's rout over concerns that the turmoil in the sector -- which sparked the UBS takeover of Credit Suisse -- could hit other major institutions, such as German giant Deutsche Bank.

Bank of England governor Andrew Bailey, whose institution ramped up interest rates last week, sounded a note of caution over banking-sector upheaval.

"We are very vigilant. We are in a period of tension, tightness and alertness," he told a parliamentary committee on Tuesday.

He added: "My very strong view about the UK banking system is that it is in a strong position, both capital and liquidity wise."

Key figures around 0215 GMT

Tokyo - Nikkei 225: UP 0.39 percent at 27,625.99

Hong Kong - Hang Seng Index: UP 2.06 percent at 20,191.68

Shanghai - Composite: DOWN 0.16 percent at 3,240.21

London - FTSE 100: UP 0.2 percent at 7,484.25 (close)

New York - Dow: DOWN 0.1 percent at 32,394.25 (close)

Read also

Asian markets mixed as banking fears persist

Euro/dollar: DOWN at $1.0839 from $1.0850

Pound/dollar: DOWN at $1.2328 from $1.2341

Euro/pound: UP at 87.92 from 87.89 pence

Dollar/yen: UP at 131.63 yen from 130.90 yen

West Texas Intermediate: UP 0.59 percent at $73.63 per barrel

Brent North Sea crude: UP 0.33 percent at $78.91 per barrel

-- Bloomberg News contributed to this story --

New feature: Сheck out news that is picked for YOU ➡️ click on “Recommended for you” and enjoy!

Source: AFP

Authors:
AFP avatar

AFP AFP text, photo, graphic, audio or video material shall not be published, broadcast, rewritten for broadcast or publication or redistributed directly or indirectly in any medium. AFP news material may not be stored in whole or in part in a computer or otherwise except for personal and non-commercial use. AFP will not be held liable for any delays, inaccuracies, errors or omissions in any AFP news material or in transmission or delivery of all or any part thereof or for any damages whatsoever. As a newswire service, AFP does not obtain releases from subjects, individuals, groups or entities contained in its photographs, videos, graphics or quoted in its texts. Further, no clearance is obtained from the owners of any trademarks or copyrighted materials whose marks and materials are included in AFP material. Therefore you will be solely responsible for obtaining any and all necessary releases from whatever individuals and/or entities necessary for any uses of AFP material.