Shares of Chinese technology companies have declined across the Asia-Pacific region after the worst day on Wall Street since the first months of the coronavirus pandemic as concerns about global growth grew.
Shares of Tencent, quoted in Hong Kong, fell by 8.6 on Thursday after the Chinese Internet group announced its the slowest revenue growth of all time in the first quarter. The company recorded a 51 percent drop in profits due to Beijing’s repression in the technology sector and the impact of tough Covid-19 blockades on consumer spending.
Charlie Tea, an analyst at 86Research, said the “rather unpleasant” results in the company’s games, advertising and new business services were “a reflection of the overall picture.” [in China]”Because” a drop in business confidence means lower business costs. “
He added that Tencent’s first-ever drop in domestic gaming revenues “shows how tight the regulation was” during Beijing’s repression of technology, which began almost a year ago.
The fall of China’s most valuable company helped lower Hong Kong’s Hang Seng Tech index by 4 percent, while the broader Hang Seng index fell 3.8 percent. In another region, Japan’s Topix fell 2 percent and China’s CSI index of 300 stocks listed in Shanghai and Shenzhen fell 0.8 percent.
Of China deteriorating economic prospects also affected stock markets as Standard Chartered lowered China’s annual growth forecast to 4.1 percent from 5 percent by joining other global investment banks, including Goldman Sachs, in lowering economic expectations as “Covid’s tight controls disrupted production and consumption.” .
The fall in Asia occurred immediately after Fr. 4 percent are falling in New York for the S&P 500 index, marking the biggest drop in a single day since June 2020, with 98 percent of the stocks included in the benchmark falling.
U.S. retailer Target has fallen 25 percent after it reported rising freight, fuel and wage costs, as well as logistical disruptions. hit on profits. The warning came a day after Walmart, the world’s largest retail group, cut management revenue on rising inflation. This week, both retailers recorded the worst daily declines since 1987.
Technology giants, including Apple, Nvidia and Amazon, fell more than 5 percent, while the technology-dominated Nasdaq Composite index fell 4.7 percent.
Equity futures showed a decline when European markets opened: the FTSE 100 fell 0.7 percent and the Euro Stoxx 50 is expected to fall nearly 1 percent.
Additional report by Primrose Reardon in Hong Kong