In Asian markets, the Hang Seng Index advanced 0.48% on Friday morning. The technology sector contributed to the morning gains, with Tencent (0700) up 2.90%. Tencent is the second-largest shareholder in Weimob (2013), which rose another 15% on Friday after announcing a gift-sending feature for WeChat. Weimob rose 36% on Thursday.
However, tech giants Alibaba (9988) and Baidu (9888) fell 3.19% and 3.09% respectively. Real estate stocks struggled after the People’s Bank of China (PBoC) left lending rates unchanged on Friday.
Mainland China markets had a mixed morning, with the CSI 300 down 0.21%, while the Shanghai Composite rose 0.16%.
Brian Tycangco, editor/analyst for Stansberry Research, commented on the PBoC hold, saying:
“A bit of a downer here. The PBoC is not lowering the LPR, which is likely related to mortgage rates rising slightly across China this month. Banks are likely to experience intense margin pressure. If the recovery in renewable energy demand does not continue this month and into the Lunar New Year, confidence will disappear without a major fiscal stimulus.”