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Asian markets mainly rise, even as US sanctions weigh on chip makers

People are silhouetted against a shop window in Hong Kong on Sunday.

AFP via Getty Images

Asian markets gained mostly in early trading on Monday, due to US restrictions against Chinese tech companies.

Nikkei 225 of Japan
+ 1.32%

Hong Kong’s Hang Seng Index rose 0.7%
+ 1.07%

advanced by 0.8%. The Shanghai composite

slipped 0.2%, while the small cap Shenzhen Composite

fell by 0.6%. Kospi of South Korea
+ 1.28%

gained 1.3%, while the benchmark indices in Taiwan
+ 1.87%
+ 0.47%

and Indonesia

have been mixed. Australian S & P / ASX 200

increased by 0.2%.

Hong Kong-traded shares of Chinese chip maker Semiconductor Manufacturing International Corp.

plunged after weekend reports that the U.S. government imposed sanctions against it, due to concerns that exports to the company had been diverted to military uses, according to the Financial Times.

In Japan, chipmaker Kioxia Holdings Corp. postponed its massive IPO, after claiming last week that U.S. export restrictions against Huawei’s Chinese technologies were hurting its business.

And in the United States on Sunday, a federal judge blocked the Trump administration’s ban on the popular Chinese-owned TikTok app from U.S. app stores. The United States said the app poses a national security risk and an agreement to partner with Oracle
+ 0.84%

and Walmart
+ 0.41%

to alleviate these concerns is in the works.

Wall Street shares were up on Friday, but for the week the Dow
+ 1.33%

fell 1.8% and the S&P 500
+ 1.59%

lost 0.6%. It was the fourth consecutive weekly decline for the two indices, corresponding to the longest losing streak since August 2019. The Nasdaq
+ 2.26%

it gained 1.1% for the week, ending a series of three-week dips.

“This week is all about payroll and presidential debates,” Stephen Innes, chief global markets strategist at AxiCorp, wrote in a statement. “But political wickedness and the torrent of global pandemic concerns continue to shake investors’ nerves.”

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