In Thursday afternoon trade, shares of Tencent in Hong Kong slipped 3.68% while Netease dropped around 5%. The Hang Seng Tech index declined 2.11%.
The Securities Times, a publication under the Chinese Communist Party’s official newspaper People’s Daily, published an article on Thursday arguing that gaming firms should not have preferential tax measures that were introduced to encourage the development of the domestic software sector — as the gaming industry is more developed now.
Hong Kong’s broader Hang Seng index edged 0.7% lower.
The Shanghai composite in mainland China fell 0.46% while the Shenzhen component shed 0.893%.
MSCI’s broadest index of Asia-Pacific shares outside Japan traded 0.32% lower.
· Nikkei gains on positive earnings, virus worries linger
Japan’s Nikkei share average rose on Thursday, underpinned by upbeat earnings from Nippon Yusen , Hitachi Zozen, and Sony Group, although gains were capped by concerns about surging cases of COVID-19
The country reported an unprecedented 14,207 jump in new cases on Tuesday, led by a record 4,166 infections for Olympics-host Tokyo.
Disappointing financial results from Ricoh also dragged the index, tumbling 11.87%.
The Covid situation in China may have weighed on investor sentiment regionally. Daily infections have bene rising again in the country as the delta variant spreads across China, with authorities imposing mass testing and widespread travel restrictions in some areas.
Elsewhere, South Korean news agency Yonhap News reported Thursday that the toughest restrictions in the greater Seoul area are “highly likely to be extended again” as cases remain persistently high.
· Singapore’s largest bank reports 37% on-year jump in second-quarter profit, beats expectations
DBS Group Holdings, the largest bank in Singapore and Southeast Asia, said its net profit for the second quarter jumped 37% from a year ago to 1.7 billion Singapore dollars ($1.26 billion).
The pan-European Stoxx 600 hovered just above the flatline in early trade, with tech stocks adding 0.6% while retail fell 1.1%.
Investors will be watching the Bank of England for its monetary policy decision Thursday. The bank is expected to uphold its massive stimulus program despite continued recovery from the U.K.’s pandemic lows and a rebound in inflation.
· FTSE 100 eases as investors await BoE rate decision
London’s FTSE 100 eased on Thursday, weighed by heavyweight bank stocks, as investors look ahead to the Bank of England’s rate setting meeting for cues on the central bank’s asset purchase plans.
The Bank of England is expected to keep its huge support for Britain’s economy running at full speed later in the day. However, it might also start to lay out its plan for how it will eventually reverse its stimulus.
The blue-chip FTSE 100 index eased 0.1%, dragged down by bank shares and oil stocks .
Reference: CNBC, Reuters
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