Alibaba Jumps While Asian Shares Fall Following US Tech Rout – Asia Market Wrap

Asian equities tumbled following a tech selloff on Wall Street on Friday, with chip stocks among the worst losers. Hong Kong was an anomaly as Alibaba soared.

The MSCI Asia Pacific Index fell 0.1%, as chipmakers sent the Nikkei-225 index lower by 1.6%. Samsung SK Hynix fell after the US suspended China’s chip-gear permits. A barometer of Hong Kong technology shares rose as high as 2.6%, with Alibaba jumping 17% and supporting peers in the broader AI space, including Baidu and Tencent.

Silver hit its highest level since 2011, while gold rose for a sixth day, trading about $3,475 per ounce. Indonesian stocks fell the most in nearly five months due to political uncertainty. Equity-index futures in the US reversed earlier gains, falling 0.1%, while contracts in Europe rose 0.1%. The US will be closed on Monday for Labour Day. On Friday, a federal appeals court found that Trump’s sweeping trade penalties were illegal.

US stocks dipped Friday after Nvidia’s tumble and Marvell Technology’s bleak forecast halted a tech-fueled rise that has buoyed markets since April. However, Alibaba’s surge supported the idea that China’s tech sector is beginning to bridge the gap with US peers in essential areas such as AI, according to analysts.

In commodities, oil fell after a monthly dip in August, with traders concerned about a potential oversupply and geopolitical risks. With Washington attempting to persuade India to halt Russian oil imports by raising secondary tariffs, traders will keep an eye on a meeting later Monday between PM Modi and Putin as part of a regional summit in China.