SMIC slumps, SoftBank drops in mixed Asia markets

Christel Deskins

Asian markets were mixed Monday, following a sharp selloff on Wall Street last week. Japan’s Nikkei 225 NIK, +0.39% dipped 0.5% while Hong Kong’s Hang Seng index HSI, +0.32% fell 0.4%. The Shanghai Composite SHCOMP, -0.04% declined 1.9% while the smaller-cap Shenzhen Composite 399106, -0.52% dropped 2.2%. South Korea’s Kospi […]

Asian markets were mixed Monday, following a sharp selloff on Wall Street last week.

Japan’s Nikkei 225
NIK,
+0.39%

dipped 0.5% while Hong Kong’s Hang Seng index
HSI,
+0.32%

fell 0.4%. The Shanghai Composite
SHCOMP,
-0.04%

declined 1.9% while the smaller-cap Shenzhen Composite
399106,
-0.52%

dropped 2.2%.

South Korea’s Kospi
180721,
+0.82%

rose 0.7%, while benchmark indexes in Taiwan
Y9999,
+0.27%

, Singapore
STI,
+0.31%

and Indonesia
JAKIDX,
+0.30%

were mixed. Australia’s S&P/ASX 200
XJO,
+0.98%

rose 0.3%.

Data showed China’s August exports were stronger than expected from the prior year, after another strong increase in July.

Shares of Chinese chip maker Semiconductor Manufacturing International Corp.
981,
+2.96%

tumbled in Hong Kong trading after a Wall Street Journal report that the Trump administration is considering placing export restrictions against it, as it has with fellow chip maker Huawei Technologies.

SoftBank Group
9984,
-2.04%

shares dropped over 7% on Monday after The Wall Street Journal reported the Japanese investment group bought $4 billion worth of options tied to around $50 billion worth of individual tech stocks.

U.S. markets are closed Monday for the Labor Day holiday. Last week, the tech-heavy Nasdaq Composite
COMP,
-1.26%

saw a 3.3% weekly decline, its largest since March, while the Dow Jones Industrial Average
DJIA,
-0.56%

fell 1.8% and the S&P 500
SPX,
-0.81%

lost 2.3%.

“We view the latest selloff as a bout of profit-taking after a strong run,” said Mark Haefele, chief investment officer at UBS Global Wealth Management, in a note Friday.

“Stocks have had a nervy start to trading Monday after the massive two-day slide for global equities since June left investors on edge,” Stephen Innes, chief global markets strategist at AxiCorp, wrote in a note Monday. “In the short-term, more so with U.S. markets closed today, it should remain an extremely choppy affair, with bounces likely being sold by design.”

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