Asia Markets: Asian markets make strong gains, though Xiaomi sputters after IPO

0
116
views

Asian stocks made strong gains early Monday, building on the Friday uptick seen in much of the world, including Wall Street.

Japan’s Nikkei NIK, +1.34%   jumped strong out of the gate, up 1.2% as the yen slipped against the dollar USDJPY, +0.00%  . Electronics companies led the way, with Sony 6758, +3.28%  , TDK 6762, +4.63%  and Fujitsu 6702, +4.01%  up more than 3%, while Murata Manufacturing 6981, +4.98%   surged 5.3% following a Nikkei report of price increases for its ceramic capacitors.

Hong Kong’s Hang Seng Index HSI, +1.56%   gained 1.4% following its first four-week losing streak since November 2016. Tencent 0700, +2.22%   was up 2.1% after disclosing plans to take its music business public in the U.S. Meanwhile, smartphone-component maker AAC 2018, +1.70%   gained 2%.

Shares of Chinese smartphone maker Xiaomi Corp. 1810, +0.00%  , which raised US$4.7 billion in one of Hong Kong’s largest tech initial public offerings in recent years, fell on their debut. The lackluster start came after Xiaomi priced its IPO at the low end of an expected range, giving the company a valuation of $54 billion. If the shares perform poorly in the coming days and weeks, they could hurt the prospects of other tech companies who are preparing their own multibillion-dollar listings in the city. Xiaomi opened at HK$16.60, 2.4% lower than its IPO price of HK$17. Shares fell as low as HK$16 a share and were recently at HK$16.82.

After notching its first seven-week losing streak in 6½ years, the Shanghai Composite SHCOMP, +1.65%  was up 1.5%. Australia’s S&P/ASX 200 XJO, +0.18%   was up a further 0.2% following Friday’s latest 10½-year closing high, led by the Big Four bank stocks, including Commonwealth Bank CBA, +0.82%   and National Australia Bank NAB, +0.32%  . South Korea’s Kospi SEU, +0.88%   gained 0.7% amid Samsung’s 005930, +2.56%   1.7% bounce. But New Zealand’s NZX 50 NZ50GR, -0.24%   eased 0.4% following another end-of-day spike Friday to a fresh record best. Auckland International Airport AIA, +0.00%   and Fletcher Building FBU, -0.85%   are among those having dropped more than 1%.

Markets in Taiwan Y9999, +1.20%  , Singapore STI, +0.87%   and Malaysia FBMKLCI, +0.34%    also posted early gains.