Japan's benchmark 225-issue Nikkei Stock Average ended higher on Monday with share prices of tech heavyweight rising following gains of U.S. semiconductor stocks, said Timothy Pope, a market analyst for China Global Television Network (CGTN).
The benchmark 225-issue Nikkei Stock Average ended up 1,378.90 points, or 2.12 percent, from Friday at 66,399.84.
The broader Topix index, meanwhile, finished 22.57 points, or 0.55 percent, higher at 4,125.80.
The benchmark Nikkei index rose over 2 percent, tracking gains in U.S. semiconductor shares late last week after a report that U.S. tech giant Micron Technology Inc. will increase its memory chip production capacity.
"In Japan, the Nikkei 225 was up sharply today following gains for U.S. semiconductor shares, which lifted Tokyo's own tech heavyweights. The Nikkei ended 2.1 percent higher, with Advantest and Tokyo Electron each adding more than 4 percent and SoftBank [Group] locked in another double-digit jump, gaining more than 11 percent," said Pope.
Pope said Japan is due to release its revised second-quarter GDP numbers this week, and he is expecting the data to send positive signals to investors.
"For the rest of the week, look out for Japan's revised second-quarter GDP numbers. They are due for release tomorrow. We have some recent corporate investment data, which has been stronger-than-expected, so there's some scope for the initial growth estimate to be revised higher," said Pope.
Tokyo stocks end higher on tech heavyweight gains: analyst
Hong Kong's Hang Seng Index slipped 0.9 percent on Monday as a stronger-than-expected U.S. jobs report lifted Fed rate hike expectations, turning investors risk-off, said Timothy Pope, a market analyst for China Global Television Network (CGTN).
Hong Kong's stock market ended lower, with the benchmark Hang Seng Index down 0.93 percent to close at 25,413.12 points.
The Hang Seng China Enterprises Index lost 1.46 percent to end at 8,429.73 points, and the Hang Seng Tech Index dropped 0.92 percent to end at 4,527.71 points.
Pope said the decline was caused by the latest stronger-than-expected U.S. payrolls data, which raised expectation for Fed rate hike that would likely hit Hong Kong-listed growth stocks.
"The Hang Seng [Index] slipped 0.9 percent. Investors turned risk-off after the U.S. payrolls data was released and that affects the market's odds of a Fed interest rate hike this month. A rate hike would hit growth stocks and that's exactly the kind of companies the Hong Kong is trying to attract onto its exchange at the moment," he said.
Pope added that Xiaomi was among today's biggest losers with the company's share price dropping by 3.3 percent.
"Among today's losers were Chinese tech names like Xiaomi, which shed 3.3 percent ahead of a major new phone launch tonight. Investors had pushed Xiaomi stock higher last week after that launch was announced, so today looked a bit more like profit-taking after buying that rumor rather than any judgment on the new handset itself," said Pope.
Pope said the Hong Kong market will see the trading debut of Longsys, continuing its tradition of attracting growth enterprises.
"Tomorrow we are going to see the trading debut of Longsys, a Chinese memory and semiconductor company which owns the Lexar storage brand. It's already listed in Shenzhen, so the Hong Kong debut will give the company a second listing. I was just talking about attracting growth stocks -- this is one of them," said Pope.
Analyst on declined Hong Kong shares on Monday
