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Soft Start To The Week For Chinese Equities Pull Wider Stocks Lower

EQUITIES

The previously alluded to round of Chinese COVID worry centered on Macau & Shanghai, coupled with weekend news that China’s antitrust watchdog fined companies including Alibaba & Tencent re: improper reporting of past transactions, has weighed on Chinese equities (CSI 300 -1.0%) at the start of the week, dragging the MSCI Asia-Ex Japan index into negative territory. E-minis have also moved to fresh session lows on the back of spill over from the Chinese equity sphere, with tech leading the weakness (further aided by Friday’s news of Tesla CEO Musk trying to terminate his acquisition of Twitter). Note that the Nikkei 225 remains comfortably higher on the day, last +1.5%, as local political developments outweigh the offshore impetus.

MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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