TOKYO / WASHINGTON (Reuters) – Asian stocks bounced between gains and losses on Thursday as a sell-off in Chinese technology stocks over concerns that they would be delisted from the US stock exchange and concerns about a shortage of semiconductors upset some investors.
MSCI’s widest index of Asia-Pacific stocks outside Japan fell 0.07%. The index has wiped out almost all of the gains it has made so far this year.
Hong Kong shares .HSI fell sharply at the opening but then erased losses and rose 0.16%. Alibaba Group Holding Ltd, Xiaomi Corp and Tencent Holdings Ltd were all lower. Shares in China rose 0.28%.
Elsewhere, Japanese stocks rose 1.33% and Australian stocks 0.17% as bargain hunters bought stocks of consumer goods, real estate and financial companies.
US equity futures rose 0.28%. Euro Stoxx 50 futures were down 0.21%, German DAX futures down 0.1% and FTSE futures down 0.07%.
The US securities regulator is introducing measures that would kick foreign companies off US stock exchanges if they fail to meet US auditing standards, requiring them to disclose all government relations – measures widely expected to affect Chinese companies.
In addition, concerns about long-term economic blockages in Europe, disruptions in the distribution of coronavirus vaccinations and possible US tax increases weighed on investor sentiment.
“Rising interest rates, uncertainty about tax policies, concerns about inflation all remain top priorities for investors. However, none of these themes speak of increasing risk appetite, ”said Peter Kenny of Kenny’s Commentary LLC and Strategic Board Solutions LLC in Denver.
“We see last year’s big earnings underperforming the broader market.”
On Wall Street, the Dow Jones Industrial Average fell 0.01%, the Nasdaq Composite 2.01%, while the S&P 500 lost 0.55% as optimistic comments from US Federal Reserve Chairman Jerome Powell and Secretary of State. Finance Janet Yellen takes profit in the technical sector.
The MSCI measure for stocks around the world rose 0.06%.
U.S. crude oil fell 1.81% to $ 60.07 a barrel, and Brent fell 1.46% to $ 63.45 a barrel, recouping some of the previous day’s profits after one of the world’s largest container ships ran aground in the Suez Canal and blocked a vital shipping route.
Benchmark 10-year yield on US Treasuries rose to 1.6209%, supported by positive data on the US manufacturing sector.
Investors have focused on yields on 10-year Treasury bonds and wondered if there is room to let long-term interest rates run, said David Kelly, chief global strategist at JPMorgan Asset Management.
“We know the economy is ready to really accelerate in the second quarter,” said Kelly. “But we haven’t seen that acceleration yet, so we’re waiting for that.”
The dollar hit a new four-month high of $ 1.1804 per euro on Thursday after protracted lockdowns and concerns about the pace of vaccinations across Europe messed up the common currency.
Even Germany’s pullback from a strict lockdown call during the Easter period could not help the euro.
Reporting by Stanley White and Katanga Johnson; Adaptation by Richard Pullin and Christopher Cushing