Smartphone maker Xiaomi was one of the strongest risers on the Hong Kong stock exchange on Monday. Investors welcomed the news that a judge in Washington has temporarily lifted US trade restrictions against the Chinese concern.
The mood on the Asian stock markets was cautious, with the technology sector under pressure. Investors mainly looked forward to the US Federal Reserve (Fed) two-day policy meeting, which begins Tuesday.
The Hang Seng index in Hong Kong was 0.1 percent lower in the meantime. Xiaomi added 8 percent. The third-largest smartphone maker in the world had been blacklisted by former President Donald Trump for ties to the Chinese military. The operation prohibited Americans from owning stock in the company. However, according to the judge, it has not been sufficiently proven that Xiaomi is blacklisted and that the company poses a threat to the United States national security.
In Tokyo, the Nikkei ended 0.2 percent in the plus at 29,766.97 points. Rakuten was worth nearly a quarter more. The Japanese e-commerce company wants to raise $ 2.2 billion with the issue of new shares. Japan Post Holdings is expected to take an 8 percent stake in Rakuten. The Chinese tech group Tencent and the American supermarket chain Walmart also buy shares in Rakuten and thus acquire 3.6 and 0.9 percent interests, respectively. Tencent fell 3.8 percent in Hong Kong amid concerns about Beijing’s stricter approach to major Chinese tech companies.
The main index in Shanghai was a negative outlier with a loss of 1.3 percent. Investors were especially in anticipation of the first high-level talks between Washington and Beijing later this week. Relations between the two economic superpowers have deteriorated sharply due to lingering trade disputes, the erosion of democracy in Hong Kong and the oppression of minorities in China.
