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Hong Kong's Hang Seng index closes 5% higher on China reopening speculation; Asia markets mixed

Lee Ying Shan

This is CNBC's live blog covering Asia-Pacific markets.

The Hong Kong Stock Exchange in Hong Kong, China, on Wednesday, July 13, 2022.
Paul Yeung | Bloomberg | Getty Images

Hong Kong stocks briefly rose 7% on Friday, with tech and consumer cyclical stocks driving the surge amid China reopening rumors and a report that U.S. inspections of Chinese company audits were completed more quickly than expected.

The Hang Seng index closed 5.36% up at 16,161.14, while the Hang Seng Tech index soared 7.54%. Stocks in the city have been reacting to speculation about a potential China reopening as zero-Covid policies persist, dragging the economy.

In mainland China, the Shanghai Composite Index closed up 2.43% at 3,070.80 and the Shenzhen Component gained 3.20% to stand at 11,187.43

Stefanie Holtze-Jen, APAC CIO at Deutsche Bank, said China's reopening is still an uncertainty, but it's "exciting to see these rumors coming about."

"The market seems to think if there's smoke, there must be fire," she said, adding that she is watching for announcements about the upcoming Shanghai marathon and articles in the Chinese Communist Party's newspaper, People's Daily, for changes in tonality.

She also told CNBC's "Capital Connection" that she is paying close attention to economic meetings in December.


Other markets in the Asia-Pacific continued to process the Fed's 75 basis point interest rate hike and looked ahead to the jobs report.

Japan's Nikkei 225's ended 1.68% lower to stand at 27,199.74 after a holiday on Thursday. The Topix slid 1.29%, closing at 1,915.40. In South Korea, the Kospi added 0.83% to 2,348.43. MSCI's broadest index of Asia-Pacific shares outside Japan was 2.33% higher.

Australia's S&P/ASX 200 closed 0.5% higher at 6,892.50. The Reserve Bank of Australia released its monetary policy statement Friday.

Asia-Pacific currencies strengthened as the U.S. dollar index slipped.

The monthly U.S. employment report is scheduled to be released later. Economists expect 205,000 jobs were added in October, and forecast the unemployment rate remained at 3.5%, according to Dow Jones.

Overnight, U.S. stocks declined for a fourth consecutive session. The Dow Jones Industrial Average slid 146.51 points, or 0.46%, to close at 32,001.25. The S&P 500 lost 1.06% to finish at 3,719.89, while the Nasdaq Composite shed 1.73% to settle at 10,342.94.

—CNBC's Samantha Subin, Carmen Reinicke contributed to this report.

Currency check: Chinese yuan, Aussie dollar strengthen on reopening rumors

The offshore Chinese yuan and the Australian dollar strengthened sharply in afternoon trade following speculation about the reopening of China's economy.

"USD/CNH dropped by nearly 1.3% in the Asia session after a rebound in Chinese equities boosted market sentiment," Carol Kong, a strategist at the Commonwealth Bank of Australia, wrote in a note.

The offshore yuan was last at 7.2495 per dollar after touching 7.2420 earlier in the session. Kong wrote that the Aussie "lifted in line with a stronger CNH" to $0.6348.

Asia-Pacific currencies strengthened as the dollar index shed previous day's gains to trade at around 112.577.

The Japanese yen was stronger at 147-levels against the greenback, while the Korean won climbed to 1,416-levels per dollar.

— Lee Ying Shan

China tech stocks extend gains on reopening rumors

China tech heavyweights listed in Hong Kong extended gains in afternoon trade, as the broader index added more than 6%.

Tech giants Alibaba and JD.com soared 14% and 13%, respectively. Tencent added 9.85%, and Meituan gained 8.34%.

The surge come on the heels of speculation on when China could ease its Covid restrictions.

— Lee Ying Shan

Oil prices rise amid easing dollar and speculation of change in China's Covid stance

Oil prices gained on the heels of a slip in the U.S. dollar index and speculation of China easing its Covid restrictions.

Brent crude futures added 2%, to stand at $96.56 per barrel, while U.S. West Texas Intermediate rose 2.21% to $90.12 per barrel.

— Lee Ying Shan

Japan's Z Holdings stock tanks nearly 14% after net income drops

Shares of Z Holdings, which owns Japanese messaging app Line, fell as much as 13.9% after the company reported a decline in net income for the six months ended Sept. 30.

Z Holdings on Wednesday announced its net income fell 25.7% to 40.3 billion yen ($272 million), compared with 54.2 billion yen in the same period a year ago.

The market was closed for a holiday on Thursday, and dropped sharply in Friday trade. The stock was last down 13.73%.

— Abigail Ng

CNBC Pro: Morgan Stanley says this global biotech stock could soar 398% in the next year

Analysts at Morgan Stanley think one global biotech company's stock could soar 398% in the next year.

The company's latest regenerative medicine has completed phase 2 trials in Japan and U.S. and is awaiting final approval.

Analysts believe it will be a "major contribution to longer-term earnings" once approved.

CNBC Pro subscribers can read more here.

— Ganesh Rao

Hong Kong stock movers: Chinese tech, electric vehicle stocks jump

Chinese tech stocks listed in Hong Kong rose sharply in morning trade, as the broader index gained more than 2%.

Index heavyweights JD.com and Alibaba jumped 8.26% and 5.56%, respectively. Tencent added 4.52%, and Meituan gained 6%.

Electric vehicle makers on the Hang Seng Tech index also rose. Xpeng and Nio shares soared 12% each, while Li Auto climbed more than 8%.

The Hang Seng Tech index was 4.45% higher.

— Abigail Ng

Mitsubishi Motors shares jump more than 17% after net income soars

Mitsubishi Motors shares popped as much as 17% after the automaker released their earnings report on Wednesday. The Japanese market was closed on Thursday.

The company posted a net income of 82.74 billion Japanese yen ($558 million), compared with 21.67 billion yen ($146 million) the year before.

Mitsubishi Motors' stock was last up 15.3%, while the benchmark Nikkei 225 fell 2.25%.

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— Lee Ying Shan

CNBC Pro: This tech stock is a 'screaming buy' right now: Ritholtz's Josh Brown

Tech stocks got clobbered this week, with the Nasdaq Composite tumbling more than 3% Wednesday after the U.S. Federal Reserve hikes rates by another 0.75 percentage point.

But Josh Brown, co-founder and CEO of Ritholtz Wealth Management, says one mega-cap tech stock is a "screaming buy" right now.

"Don't expect this to be a hot stock right now. But I think it's insanely cheap," Brown told CNBC.

CNBC Pro subscribers can read more here.

— Weizhen Tan

Dow slips 146.51 points, Nasdaq sinks 1.73%

Stocks closed lower Thursday as markets prepared for October's nonfarm payrolls report.

The Dow Jones Industrial Average slid 146.51 points, or 0.46%, to close at 32,001.25. The S&P 500 lost 1.06% to finish at 3,719.89, while the Nasdaq Composite shed 1.73% to settle at 10,342.94.

— Samantha Subin