Asian shares lower, Shanghai STAR tech board shares surge

Li Qiang, center left, Shanghai's Party chief, and Yi Huiman, center right, chairman at China Securities Regulatory Commission, and the heads of 25 companies celebrate the launch of the SSE STAR Market in the hall of Shanghai Securities Exchange in Shanghai, China, Monday, July 22, 2019. Trading started Monday on a Chinese stock market for high-tech companies that play a key role in official development plans that are straining relations with Washington. (Chinatopix via AP)
Stock investors chat beside a banner promoting the newly launched STAR market in a brokerage house in Hangzhou in east China's Zhejiang province Monday, July 22, 2019, the trading day of the new board. (Chinatopix via AP)
Li Qiang, center left, Shanghai's Party chief, and Yi Huiman, center right, chairman at China Securities Regulatory Commission, strikes a gong to launch the SSE STAR Market in the hall of Shanghai Securities Exchange in Shanghai, China, Monday, July 22, 2019. Trading started Monday on a Chinese stock market for high-tech companies that play a key role in official development plans that are straining relations with Washington. (Chinatopix via AP)
A special gong is prepared for the launch of the SSE STAR Market in the hall of Shanghai Securities Exchange in Shanghai, China, Monday, July 22, 2019. Trading started Monday on a Chinese stock market for high-tech companies that play a key role in official development plans that are straining relations with Washington. (Chinatopix via AP)

TOKYO — Asian shares were mostly lower Monday, tracking losses on Wall Street, though a newly launched technology stocks market in Shanghai soared with its trading debut.

Prices of the 25 companies listed on the Shanghai Stock Exchange's STAR Market more than doubled, with one company, Anji Microelectronics Technology (Shanghai) Co., Ltd., logging a 415% advance.

Regulators have approved 25 companies in information technology and other fields for the STAR Market. The market, modeled on the U.S.-based NASDAQ, reflects the ruling Communist Party's desire to channel private capital into its development plans. It gives small Chinese investors a chance to buy into tech industries that until now have turned to Wall Street to sell shares.

Elsewhere in Asia the mood was more subdued.

Japan's Nikkei 225 slipped 0.3% to 21,400.35. Australia's S&P/ASX 200 fell 0.3 to 6,683.50. South Korea's Kospi inched down but was flat at 2,093.77. Hong Kong's Hang Seng lost 0.8% to 28,451.65, while the Shanghai Composite index sank 0.8% to 2,901.88.

U.S. stocks retreated further from their records on Friday to cap the weakest week for the S&P 500 since May as sentiment darkened after Iran said it seized a British oil tanker in the latest escalation of tensions between Tehran and the West.

The S&P 500 fell 0.6% to 2,976.61. After setting its record high on Monday, the index see-sawed mostly lower and lost 1.2% for the week. It's just the second down week for the index in the last seven. The Dow Jones Industrial Average fell 0.3% to 27,154.20, and the Nasdaq composite lost 0.7% to 8,146.49.

Momentum for U.S. stocks has slowed since early June, when they began soaring on expectations that the Federal Reserve will cut interest rates for the first time in a decade to ensure the U.S. economy doesn't succumb to weaknesses abroad. The Fed's next meeting is scheduled for the end of this month.

"With the markets wholly captivated by the looser the policy, the better the risk opportunities, investors could remain singularly focused on the Federal Reserve, and the European Central Bank policy decision and communications as global equity markets continue to have their ups and down based on the perceived degree of accommodative central bank policy," Stephen Innes of Vanguard Markets said in a commentary.

ENERGY: Benchmark U.S. crude oil added 47 cents to $56.23 a barrel in electronic trading on the New York Mercantile Exchange. It gained 34 cents to $55.76 on Friday. Brent crude, the international standard, rose 79 cents to $63.26 per barrel.

CURRENCIES: The dollar rose to 108.00 Japanese yen from 107.74 yen Friday. The euro weakened to $1.1218 from $1.1221.

People also read these

Asian stocks markets retreat after Wall Street loss

Dec 23, 2016

Most Asian stock markets have declined in thin trading ahead of the Christmas holiday after Wall...

China's growth edges up but 2016 weakest year since 1990

Jan 20, 2017

China reports its economy picked up pace in the last quarter, though its full-year performance was...

Asian shares rise in thin trade as markets watch Trump

Jan 27, 2017

Asian stocks are drifting mostly higher in quiet trading as traders and investors prepared for the...

Asian stocks mixed after Wall Street ends little changed

Feb 3, 2017

Asian stocks are mixed after Wall Street ended little changed as China and other exchanges that...

Asian stocks decline after Wall Street falls

Feb 7, 2017

Asian stocks are lower after Wall Street declined and oil rebounded

AseanCoverage is a next-gen news site focusing exclusively on online news from South East Asia.

Contact us: sales[at]aseancoverage.com