Alibaba’s Strong Earnings Boost Hang Seng, While Other Asian Markets Decline

Asian markets experienced a mixed performance on Monday, with the Hang Seng Index rising 2% due to Alibaba’s impressive earnings, while other major indexes in the region declined. The Chinese e-commerce giant’s US-listed shares surged 15% after reporting strong results, including a significant increase in AI revenue.

The Shanghai Composite also edged up, albeit marginally, with a 0.4% gain. However, Japan’s Nikkei 225 fell 2% as tech shares faced pressure, and Seoul’s Kospi declined despite South Korea’s record monthly semiconductor exports in August. The Jakarta index also plummeted over 2% following violent unrest sparked by economic hardship.

The decline in Asian markets follows a drop in US stocks on Friday, with the Dow and S&P 500 retreating from record highs ahead of the Labor Day weekend. The acceleration of a key US inflation reading has reduced the likelihood of sustained interest rate cuts by the Federal Reserve in the coming months. Although a September rate cut of 25 basis points is still possible, rising inflation may limit the Fed’s ability to act aggressively.

In Europe, German inflation rose in August for the first time this year, which could also impact the European Central Bank’s rate cut decisions. Meanwhile, a US appeals court ruled that President Donald Trump exceeded his authority in imposing wide-ranging duties using emergency economic powers. The tariffs remain in place, and Trump has vowed to challenge the ruling.

Key market figures as of 0230 GMT include the Tokyo Nikkei 225 at 41,849.82, down 2.0%, and the Hong Kong Hang Seng Index at 25,596.32, up 2.0%. The Shanghai Composite stood at 3,874.05, up 0.4%, while the New York Dow closed at 45,544.88, down 0.2%. The euro/dollar exchange rate rose to $1.1705, and the pound/dollar rate increased to $1.3519. Oil prices declined, with West Texas Intermediate down 0.4% at $63.78 per barrel and Brent North Sea Crude down 0.4% at $67.21 per barrel.

The recent market developments highlight the ongoing impact of trade tensions, monetary policy, and economic indicators on global markets. As investors continue to navigate these complex factors, the next steps for central banks and governments will be closely watched.