Hang Seng Tech index volatile on first day of trading in Hong Kong

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The Hang Seng TECH Index – which tracks the 30 largest tech companies trading in the city, including Alibaba (BABA) – briefly jumped 2.2% in early trade and was at one point one of the best results in the region. But then it reversed course and fell 1.4%.

The index debut comes a week after the announcement of the creation of the Hang Seng Indexes index compiler. At the time, HSI noted that the tech sector had grown in importance in Hong Kong as Alibaba (BABA), JD.com (JD) and NetEase (DETECTOR) – including all exchanges in New York – have in recent months held secondary registrations in Hong Kong. And Ant Group, the company behind China’s Alipay mobile payment business, announced last week that it had chosen Hong Kong and Shanghai for its IPO.

The new index is the “Nasdaq of the Is, ”Citi analysts wrote in a note last week. They added that “high-quality” Chinese technology companies would likely be drawn to Hong Kong.

Inventories elsewhere in the region were mixed. South Korea Kospi (KOSPI) grew by 1.2%, while China Composite de Shanghai (SHCOMP) increased by 0.1%. But the benchmark of Hong Kong Hang Seng (HSI) fell slightly by 0.1% and that of Japan Nikkei (N225) lost 0.3%.

Investors continue to monitor the progress of the coronavirus pandemic around the world, as well as tensions between the United States and China. The US consulate in Chengdu closed Monday after Beijing ordered it to close. Last week, the US government abruptly ordered the closure of the Chinese consulate in Houston, Texas.

Gold prices hit an all-time high, topping $ 1,933 an ounce, as investors sought safe-haven assets amid geopolitical uncertainty.

US stocks, however, could still have a positive day on Monday. Futures for the Dow (UNDUE), Nasdaq (COMP) and S&P 500 (SPX) were all at least 0.5%.

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