CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
US English

Major Asia-Pacific markets dragged by energy, tech losses

By Mensholong Lepcha

05:03, 22 November 2021

Illustration of stock market down
Illustration of stock market down – Photo: Shutterstock

Major Asia-Pacific markets in Japan, Australia and Hong Kong opened the week lower as energy and technology stocks emerged as top drags across the region on Monday.

Hong Kong’s Hang Seng index fell 0.4% to 24,962.11 by lunch break on Monday. The Hang Seng Mainland Oil & Gas Index fell 2.5% by midday as oil prices hit seven-week low on oversupply concerns and demand worries following resurgent Covid-19 waves in Europe.

Hang Seng TECH index fell 0.8% on Monday after Chinese technology companies including Alibaba Group and Baidu were fined by regulator for monopolistic practices.

Japan announced record stimulus package

In Japan, benchmark Nikkei 225 index inched 0.1% by Monday afternoon despite the government announcing a record JPY56trn ($490bn) stimulus package last week to aid its Covid-19 recovery.

On Monday, Topix-17 Energy Resources sectoral index fell 2% and Topix-17 Electric Appliances & PRE Instrument sectoral index slipped 0.3%.

US100

14,710.90 Price
+0.190% 1D Chg, %
Long position overnight fee -0.0262%
Short position overnight fee 0.0039%
Overnight fee time 21:00 (UTC)
Spread 7.0

US30

33,985.70 Price
-0.190% 1D Chg, %
Long position overnight fee -0.0262%
Short position overnight fee 0.0039%
Overnight fee time 21:00 (UTC)
Spread 11.0

US500

4,322.00 Price
-0.110% 1D Chg, %
Long position overnight fee -0.0262%
Short position overnight fee 0.0039%
Overnight fee time 21:00 (UTC)
Spread 1.7

HK50

18,015.90 Price
+2.730% 1D Chg, %
Long position overnight fee -0.0246%
Short position overnight fee 0.0027%
Overnight fee time 21:00 (UTC)
Spread 35.0

Oil and gas explorer INPEX was the top loser in Tokyo on Monday, down 4.6%. Automobile stocks were also weak on Monday as carmaker Nissan Motor and auto ancillary companies including NSK and Yokohama Rubber made the top 10 intraday losers list.

What is your sentiment on 1605?

2280.92
Bullish
or
Bearish
Vote to see Traders sentiment!

“Reduction of risk appetite”

Elsewhere, Australia’s S&P/ASX 200 index fell 0.5% on Monday as financials, tech and energy sector lost over 1% each.

S&P/ASX 200 Energy slipped 1.5% as Beach Energy declined over 4%, while Oil Search and Santos fell about 2% each by Monday afternoon. Meanwhile, all the “Big Four” banks trade in the red on Monday with Westpac Banking leading losses by falling over 2%.   

“There's not just a single factor driving markets, but many, though they are mostly pointing the same way - a reduction of risk appetite,” said Robert Carnell, ING Asia-Pacific regional head of research, citing resurgent Covid-19 cases in Europe, earlier-than-expected US rates tapering, falling oil prices and geopolitical issues.

Read more: Can corporates be swayed to care about people and the planet?

Markets in this article

9988
Alibaba Group
86.4 USD
3.7 +4.490%
AU200
Australia 200
7045.0 USD
71 +1.020%
AU200
Australia 200
7045.0 USD
71 +1.020%
AU200
Australia 200
7045.0 USD
71 +1.020%
AU200
Australia 200
7045.0 USD
71 +1.020%

Related topics

Rate this article

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.
Capital Com is an execution-only service provider. The material provided on this website is for information purposes only and should not be understood as an investment advice. Any opinion that may be provided on this page does not constitute a recommendation by Capital Com or its agents. We do not make any representations or warranty on the accuracy or completeness of the information that is provided on this page. If you rely on the information on this page then you do so entirely on your own risk.

Still looking for a broker you can trust?

Join the 555.000+ traders worldwide that chose to trade with Capital.com

1. Create & verify your account 2. Make your first deposit 3. You’re all set. Start trading