The Hang Seng Tech Index — a new index tracking the 30 largest tech firms listed in Hong Kong — sank as much as 5.3% in the morning. It then pared losses and was down 1.8% in the afternoon. Alibaba, JD.com and semiconductor giant SMIC all lost at least 4%. (Tech stocks will soon become even more important for Hong Kong’s benchmark Hang Seng Index, which adds Alibaba and Xiaomi next week — a reflection of the growing number of Chinese tech firms trading in the city.)
Asian markets are “catching a cold” after the “US market sneezing” last night, Jingyi Pan, a market strategist for IG, wrote in a Friday research note.
Futures for all three US indexes continued to trend lower in after-hours trading.
“Market corrections are to be expected,” said Kerry Craig, global market strategist for JP Morgan Asset Management, in a Friday research note. “A market fueled by central bank largesse, economic surprises and record earnings beats in the last few months was never going to maintain its heady pace forever.”
Hong Kong prepares for more public offerings
Despite Friday’s market turbulence, Asia has some good news to prepare for: Hong Kong is getting ready to embrace even more Chinese companies on its stock exchange.