Asia-Pacific markets rise; JD shares in Hong Kong plunge 9% after Tencent says it will dilute stake

Asia-Pacific markets rose in Thursday morning trade, seeing a continued rebound from fears over the omicron Covid variant.
Hong Kong-listed shares of Chinese e-commerce titan JD.com plunged 9.1% while Tencent surged 2.17%. Those moves came after Tencent announced it will distribute majority of its shares in JD.com to its shareholders.
Investors watched for moves in the mainland Chinese markets after the city of Xi’an ordered its 13 million residents to stay at home as it attempts to deal with rising Covid cases, according to Reuters.

Shares in Asia-Pacific largely rose in Thursday morning trade, as fears over the omicron Covid variant eased.

Hong Kong-listed shares of Chinese e-commerce titan JD.com plunged 9.1% while Tencent surged 2.17%. Those moves came after Tencent announced it will distribute the majority of its shares in JD.com to its shareholders, effectively diluting its stake in the e-commerce firm from around 17% to approximately 2.3%.

Hong Kong’s Hang Seng index lagged the broader region, slipping 0.1%.

Mainland Chinese stocks were higher, with the Shanghai composite up nearly 0.1% while the Shenzhen component climbed 0.256%. Investors will continue monitoring Covid developments after the Chinese city of Xi’an ordered its 13 million residents to stay at home as it deals with rising Covid cases, according to Reuters.

The Nikkei 225 in Japan nudged 0.38% higher while the Topix index gained 0.44%. South Korea’s Kospi climbed 0.28%.

Elsewhere, the S&P/ASX 200 in Australia gained 0.36%.

MSCI’s broadest index of Asia-Pacific shares outside Japan traded 0.28% higher.

Overnight stateside, the Dow Jones Industrial Average gained 261.19 points to 35,753.89 while the S&P 500 rose 1.02% to 4,696.56. The Nasdaq Composite jumped 1.18% to 15,521.89.

Those gains on Wall Street came after the U.S. Food and Drug Administration on Wednesday granted authorization for Pfizer’s Covid treatment pill, the first oral antiviral drug cleared during the pandemic.

Source: CNBC

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