HONG KONG- Asian share markets were volatile on Tuesday, after Australia’s central bank flagged some tapering in its quantitative easing program and concerns over the future of China’s powerful technology sector weighed down shares.
US markets were closed on Monday to mark the Independence Day holiday, leaving the Asian region without a strong lead to trading on Tuesday.
MSCI’s broadest index of Asia-Pacific shares outside Japan was down 0.1 percent.
In Hong Kong, the Hang Seng Index was down 0.44 percent, marking its sixth day of losses, while China’sCSI300 was off by nearly 0.6 percent to an almost two-month-low.
“Equities will continue to grind higher in Asia, but Hong Kong and China have been choppy for the past few days, I think China could remain weaker compared to the rest of Asia,” said Suresh Tantia, Credit Suisse’s senior investment strategist.
“China is still going through change … policy is still tightening and tech regulation is increasing, that will weigh on the market.”
Japan’s Nikkei was up 0.3 percent while the positive tone in the S&P ASX200 earlier Tuesday reversed following the RBA’s decision to keep interest rates on hold.
The ASX200 was down nearly 0.3 percent after trading up by as much as 0.21 percent in the morning session. In South Korea, the Kospi 200 Index rose 0.42 percent during the afternoon.
Chinese technology stocks remained under the microscope on Tuesday after the Cyberspace Administration of China ordered an investigation into Didi Global Holdings just days after it listed on the New York Stock Exchange.
