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Tech stocks rally to push Asia-Pacific markets higher

By Mensholong Lepcha

08:37, 12 November 2021

Cityscape layered with stock market illustration
Cityscape layered with stock market illustration – Photo: Shutterstock

Technology stocks rallied in the Asia-Pacific region on Friday to lead markets in Japan, Hong Kong, South Korea and Australia higher as investors looked past rising inflation concerns for the time being.

South Korea’s benchmark KOSPI saw its best day in nearly a month, rising 1.5% to emerge as the top gainer among regional markets on Friday.

Smartphone-to-memory chip maker Samsung Electronics rose 1%, internet firm Naver inched 0.5% higher, digital lender KakaoBank jumped over 5% and hit online game PUBG developer Krafton climbed 1.3% on Friday.

2022 presidential elections on the horizon

Investors in South Korea will now have an eye out for any political developments given the fact that the 2022 presidential elections is just a few months away.

“Historical experience suggests next year’s presidential election could be an inflection point, which determines the long-term direction of economic and social changes,” said Jeong Woo Park of Nomura.

“Looking at the latest constituent sentiment, major media polls suggest many voters still remain undecided, which clouds our outlook on the election result at this point,” added Kathleen Oh and Bum Ki Son of BOFA Securities.

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Evergrande stocks jump

In Hong Kong, tech stocks combined with property firms to push benchmark Hang Seng index 0.3% higher on Friday.

Shares in Evergrande surged as much as 16% to its highest since 30 September, after the debt-ridden property developer averted yet another payment default on a bond payment.

US30

35,469.00 Price
+0.320% 1D Chg, %
Long position overnight fee -0.0262%
Short position overnight fee 0.0040%
Overnight fee time 22:00 (UTC)
Spread 2.2

US100

16,010.50 Price
+0.310% 1D Chg, %
Long position overnight fee -0.0262%
Short position overnight fee 0.0040%
Overnight fee time 22:00 (UTC)
Spread 1.8

HK50

17,347.60 Price
-0.690% 1D Chg, %
Long position overnight fee -0.0263%
Short position overnight fee 0.0044%
Overnight fee time 22:00 (UTC)
Spread 5.0

US500

4,561.50 Price
+0.200% 1D Chg, %
Long position overnight fee -0.0262%
Short position overnight fee 0.0040%
Overnight fee time 22:00 (UTC)
Spread 0.7

Upbeat news from the world’s most indebted property developer Evergrande whetted investor appetite for Chinese real estate stocks as the Hang Seng Mainland Properties Index rose 1% on Friday.

Japan stocks extend gains

Japan stocks extended gains on Friday as benchmark Nikkei 225 index saw its best day in nearly two weeks, up 1.1%.

Tech investor SoftBank Group rose 2.5% to close at its highest in nearly two months on Friday. Semiconductor-making equipment manufacturer Tokyo Electron and Advantest advanced 2% and 0.9%, respectively.

Technology conglomerate Rakuten Group bucked the trend to slip 1.3% after its net loss in the first nine months of the year widened compared with a year ago. Meanwhile, electronics-to-nuclear power conglomerate Toshiba fell over 1% after unveiling plans to split into three companies.

Aussie miners up on Evergrande relief

Elsewhere, Australia’s S&P/ASX 200 index snapped four days of losses on Friday to close 0.8% higher.

A brief respite from Evergrande’s looming default helped mining stocks post gains of over 2% on Friday. Iron ore-focused miners BHP Group and Rio Tinto jumped 2.8% and 3.4%, respectively, in Sydney.

S&P/ASX All Technology index added 1.6% as buy-now pay-later firms Afterpay and Zip ended 2% and 3.7% higher, respectively. S&P/ASX 200 Financials index inched up 0.6% with all the “Big Four” banks ending the session in the green.

Read more: Japan’s Rakuten Group’s loss widens in first nine months

Markets in this article

AU200
Australia 200
7033.0 USD
37 +0.530%
AU200
Australia 200
7033.0 USD
37 +0.530%
AU200
Australia 200
7033.0 USD
37 +0.530%
AU200
Australia 200
7033.0 USD
37 +0.530%
AU200
Australia 200
7033.0 USD
37 +0.530%

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The difference between trading assets and CFDs
The main difference between CFD trading and trading assets, such as commodities and stocks, is that you don’t own the underlying asset when you trade on a CFD.
You can still benefit if the market moves in your favour, or make a loss if it moves against you. However, with traditional trading you enter a contract to exchange the legal ownership of the individual shares or the commodities for money, and you own this until you sell it again.
CFDs are leveraged products, which means that you only need to deposit a percentage of the full value of the CFD trade in order to open a position. But with traditional trading, you buy the assets for the full amount. In the UK, there is no stamp duty on CFD trading, but there is when you buy stocks, for example.
CFDs attract overnight costs to hold the trades (unless you use 1-1 leverage), which makes them more suited to short-term trading opportunities. Stocks and commodities are more normally bought and held for longer. You might also pay a broker commission or fees when buying and selling assets direct and you’d need somewhere to store them safely.
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