Asian stocks continue to drop as China’s tech crackdown widens
Asian stocks traded weakly on Thursday hitting a six-week low as China’s tech crackdown forced investors to give up their companies. The country’s unexpected signal at monetary easing raised doubts on economic recovery strength.
MSCI’s index of Asia shares outside Japan declined 1% to its lowest since late May. Meanwhile, Hang Seng recorded the biggest drop of 2.3%, where one-time darlings Tencent and Alibaba tumbled to year-to-date lows.
Japan’s Nikkei was down 0.6%, S&P 500 futures fell 0.2% and Euro Stoxx 50 futures dropped 0.1%.
Investors grew wary of China’s extending tech crackdown evident in a 12% drop in Hong Kong’s tech index where some of China’s online giants are listed.
China’s weak loan growth and slow demand threatening global economic recovery’s momentum have also dampened investors’ sentiment.