U.S. Department of Commerce and Chinese Stocks

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Commerce Department and Asian stocks

The relations between the world’s largest economies are quite complex. Moreover, it is hard to determine how long, it would take to solve all issues. Importantly, the U.S. decided to impose restrictions on exports on the Chinese chipmaker SMIC due to risks of military use. According to the company, it has no ties with the Chinese military. Interestingly, stocks in the Asia Pacific were mixed on Monday.

According to a letter from the U.S. Department of Commerce, companies will have to apply for individual export licenses.

Shares of famous chipmaker listed in Hong Kong fell 3.88% on Monday, against a broader rise in the sector as the Hang Seng Tech index gained 0.86% on the day to 6’978.59.

The reported move by the U.S. government would affect China’s plans to boost its domestic semiconductor industry.

On Monday, shares of the real estate developer soared 20.61%. Notably, shares of China Evergrande Group in Hong Kong declined on Friday.

Stocks and interesting details

As stated above, stocks in the Asia Pacific were mixed on September 28. Hong Kong’s Hang Seng index gained 1.04% to close at 23’476.05.

Mainland Chinese saw losses on the day. For example, the Shanghai Composite slightly fell to about 3’217.53. Also, the Shenzhen Component declined 0’415% to around 12’760.93.

The country’s industrial profits rose 19.1% in August according to China’s National Bureau of Statistics. Investors are closely watching the Chinese economic data as they want to learn more about the local economy.

In Japan, the Nikkei 225 added 1.32% to close at 23’511.62. The Topix index gained 1.69% to finish its trading day at 1’661.93.

South Korea’s Kospi index gained 1.29% to close 2’308.08 with entertainment shares in the country rose following K-pop sensation BTS’ label Big Hit Entertainment priced its IPO at the top end of the range.

Last but not least, Australia’s S&P/ASX 200 dropped 0.21% to end its trading day at 5’952.30

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