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Asian markets rebound despite wariness of Chinese tech stocks – MarketWatch

SINGAPORE — Asian stocks were mostly higher Wednesday as traders mirrored overnight gains on Wall Street during another busy earnings week.

Tokyo’s Nikkei 225 NIK, -0.21% fell 0.1% , while the Kospi 180721, +1.34% in South Korea advanced 1.2% and the Hang Seng HSI, +0.88% in Hong Kong added 1.6%. The Shanghai Composite index SHCOMP, +0.85% gained 0.6%.

Sydney’s S&P/ASX 200 XJO, +0.38% was 0.4% higher. Stocks advanced in Singapore STI, +1.07%, Taiwan Y9999, +0.40% and Indonesia JAKIDX, +0.46%.

Traders are awaiting U.S. jobs data due Friday. They are also watching the coronavirus’ delta variant spreading in the U.S., Europe and Asia, and particularly in China.

Although China’s recent outbreak is small, infecting hundreds rather than the thousands and tens of thousands of people sickened in outbreaks elsewhere, it is by far the worst China has had since the pandemic’s emergence in the central city of Wuhan a year and a half ago.

“The small but significant rise in cases in China is grabbing attention,” Robert Carnell of ING said in a note.

“Tough restrictions on movement and travel already in place will likely bring the desired results. But the delta variant is a particularly slippery little critter, and the concern for us, and we imagine, many others, is how quickly this will occur, and at what economic cost in the meantime,” he said.

Over on Wall Street, technology and health care companies spurred indexes higher on Tuesday. The S&P 500 SPX, -0.44% overcame a wobbly start to finish 0.8% higher, at 4,423.15.

Earnings have boosted sentiments. Roughly nine out of 10 companies on the S&P 500 index have posted earnings that beat analysts’ expectations. Over a 100 more companies will table reports this week.

The Dow Jones Industrial Average DJIA, -0.68% added 0.8% to 35,116.40, while the Nasdaq composite COMP, -0.16% picked up 0.6% to 14,761.29.

Some traders sold U.S.-listed Chinese companies. E-commerce giant Alibaba Group BABA, +1.78% slipped 1.4% and internet search giant Baidu Inc. BIDU, +0.26% fell 1.5% on Tuesday.

Hong Kong-listed shares of games and social media giant Tencent Holdings Ltd. 700, +2.42% gained 4% on Wednesday.

Concerns are brewing over the China’s crackdown on technology, Edward Moya of Oanda said.

“U.S.-listed Chinese companies are getting battered as some investors don’t have the stomach for this regulatory shakedown,” he added.

In energy markets, benchmark U.S. crude CLU21, -2.08% lost 19 cents to $70.37 per barrel in electronic trading on the New York Mercantile Exchange. Brent crude BRNV21, -1.59%, the price basis for international oils, shed 5 cents to $72.36 per barrel in London.

The U.S. dollar USDJPY, +0.45% retreated to 109.04 Japanese yen from 109.05 yen on Tuesday.