- Hong Kong technology shares rose, supporting Asian equities, as investors see a potential turning point for the sector in China.
- The Hang Seng Tech Index rose more than 1% in Hong Kong on Monday, led by Alibaba Group Holdings. The imposition of large fines on Ant Group, an Alibaba affiliate, and Tencent Holdings was interpreted as the end of a crackdown on Chinese tech companies.
- An Asia equity benchmark fluctuated, aided by Hong Kong and mainland Chinese shares, while Japan's weakness kept gains in check. US stock futures fell after most American equities fell on Friday as wage data revealed that inflation remained a threat. Over the holiday-shortened week, the S&P 500 fell 1.2%, while the Nasdaq 100 fell 0.9%.
- Constructive dialogue between Beijing and Washington helped to lift Asian sentiment on Monday. US Treasury Secretary Yellen's two-day meeting with top officials in Beijing is seen as a way for the US and China to limit the economic damage caused by the two countries' intensifying rivalry.
- As trading resumes in Asia, investors face a slew of competing forces, including the risk of higher interest rates and a recession. China's latest data also show that the world's second-largest economy is still devoid of inflationary pressure.
