Asian Market Update: Hang Seng Index dips amid earnings weakness: Baidu plunges 8.23% as stimulus uncertainty weighs on Chinese markets.
On Friday morning, the Hang Seng Index fell by 0.33%, impacted by corporate earnings reports and ongoing concerns regarding U.S. tariffs on China.
The Hang Seng Mainland Property Index (HSMPI) decreased by 0.86%, while the Hang Seng Tech Index saw a slight increase of 0.03%. Notably, Baidu (9888) dropped 8.23% following disappointing Q3 earnings, and Alibaba (9988) fell by 1.90%. In contrast, Sunny Optical Technology Group (2382) surged by 5.80%, and BYD Electronic International (0285) rose by 5.79%.
Mainland China's equity markets also experienced declines, with the CSI 300 and the Shanghai Composite both down by 0.53%.
Chinese tech giant Baidu reported a 3% year-over-year decline in third-quarter revenue on Thursday, yet managed to exceed market expectations, thanks in part to growth in its AI cloud services.
For the quarter ending September 30, Baidu's revenue totaled $4.78 billion, while net income rose by 14% to $1.09 billion.
The company highlighted a 12% increase in non-online marketing revenue, reaching approximately $1.1 billion, primarily driven by its artificial intelligence cloud business.
For the third quarter of 2023, Baidu reported revenue of 34.45 billion yuan (approximately $4.75 billion) and net income of 6.68 billion yuan.
Based in Beijing, Baidu operates one of China's leading web search engines and a widely used mapping application. The company also offers cloud computing services, with online marketing contributing significantly to its overall revenue.
On Friday morning, Japan's Nikkei Index rose by 1.02%, reflecting the positive momentum from Wall Street's overnight performance. Tech stocks led the charge, with Softbank Group Corp. (9984) up 0.69% and Tokyo Electron (8035) achieving a notable gain of 2.55%. This rise in tech shares underscores the growing investor confidence in the sector.
However, not all stocks shared this upward trend. Nissan Motor Corp. (7201) experienced a decline of 0.56%. This drop is attributed to concerns regarding a potential rate hike by the Bank of Japan, as well as expectations for a stronger Japanese yen, which could impact the company’s export competitiveness.
Overall, the Nikkei's performance highlights a mixed bag of investor sentiment, with tech stocks thriving while automotive shares face challenges amid evolving economic conditions. Investors will be watching closely for further developments in both the domestic and global markets.
Risk Warning: this article represents only the author’s views and is for reference only. It does not constitute investment advice or financial guidance, nor does it represent the stance of the Markets.com platform.When considering shares, indices, forex (foreign exchange) and commodities for trading and price predictions, remember that trading CFDs involves a significant degree of risk and could result in capital loss.Past performance is not indicative of any future results. This information is provided for informative purposes only and should not be construed to be investment advice. Trading cryptocurrency CFDs and spread bets is restricted for all UK retail clients.
The US economy grew faster than initially estimated in the second quarter, fueled by business investment and strong exports. The labor market remains resilient despite some signs of cooling, influencing Federal Reserve interest rate decisions.
Sovereign wealth funds are investing in European stocks, anticipating stronger performance than US equities over the next ten years. This is driven by relative stock valuations and concerns about inflation in the United States.
A key Japanese trade negotiator's trip to the US has been delayed over disagreements regarding tariffs and investment plans, highlighting ongoing challenges in the trade relationship between the two nations.
set cookie
