Alibaba, Nio Drop Over 2%: Hang Seng Opens Weaker As Wall Street 'Santa Claus' Rally Remains Elusive

Hong Kong stocks opened in the red on Tuesday morning with the benchmark Hang Seng losing 0.93% in morning trade as mounting fears of a recession are overshadowing hopes of a "Santa Claus" rally, generally seen during the end of the year. EV peers fell with Nio and Xpeng declining over 5% in morning trade. Alibaba and Tencent shares lost close to 2%.

Macro News: State Department spokesperson Ned Price said on Monday the United States hopes that China can address the current COVID-19 outbreak as the toll is a global concern owing to the size of the Chinese economy, reported Reuters.

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Securities regulators in mainland China and Hong Kong have agreed to widen the scope of stocks eligible for inclusion in the city’s trading links with Shanghai and Shenzhen, reported Bloomberg.

Company News: Tencent Holdings has acquired a 20% stake in a South Korean video gaming studio SHIFT UP, reported the South China Morning Post citing a local media report.

The wait time for NIO’s ES7 model has been reduced to 2-3 weeks compared to the previous 4-6 weeks, reported CnEVPost.

Top Gainers and Losers: Longfor Group Holdings Limited and Country Garden Services Holdings Company Limited are the top losers among Hang Seng constituents, having shed over 5% each. WuXi Biologics (Cayman) Inc. and Techtronic Industries Company Limited are the only two gainers on the index, having risen 0.6% and 0.28%, respectively.

Global News: U.S. futures traded in the green on Monday morning Asia session. The Dow Jones futures gained 0.12% while the Nasdaq futures rose 0.18%. The S&P 500 futures were trading higher by 0.14%.

Elsewhere in Asia-Pacific, Australia’s ASX 200 was trading lower by 0.55%. Japan’s Nikkei 225 traded 0.33% higher while China’s Shanghai Composite index lost 0.32%. South Korea’s Kospi shed 0.03%.

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