Asia report: Markets mostly weaker, Alibaba handed huge antitrust fine

Most stock markets in Asia closed in negative territory on Monday, although Alibaba rocketed in Hong Kong even after it was hit with a massive fine by Chinese competition regulators.

In Japan, the Nikkei 225 was down 0.77% at 29,538.73, as the yen strengthened 0.28% against the dollar to last trade at JPY 109.36.

Technology conglomerate SoftBank Group rose 0.8%, while among the benchmark’s other major components, automation specialist Fanuc was down 1.76%, and fashion firm Fast Retailing lost 0.66%.

The broader Topix index lost 0.25% by the end of trading in Tokyo, closing at 1,954.59.

On the mainland, the Shanghai Composite lost 1.09% to 3,412.95, and the smaller, technology-heavy Shenzhen Composite slid 2.13% to 2,188.89.

South Korea’s Kospi was the region’s odd one out, managing gains of 0.12% to 3,135.59, while the Hang Seng Index in Hong Kong was 0.86% weaker at 28,453.28.

China technology behemoth Alibaba surged 6.51% in the special administrative region, despite the news that competition regulators in Beijing had handed down a CNY 18.23bn (£2.02bn) fine to the firm.

The company had been undergoing an investigation around alleged monopolistic behaviours in recent months.

“Asian markets kicked off the week on a bearish note, but Alibaba shares rallied in Hong Kong despite news that the company will pay a record antitrust fine of $2.8bn for having abused its market dominance over merchants and its competitors,” said Swissquote senior analyst Ipek Ozkardeskaya.

“The curious positive reaction was partly due to a relief that the case is finally over, partly due to Alibaba taking the news with ease and thanking the government.”

Seoul’s blue-chip technology stocks were in the red, with Samsung Electronics down 0.48% and SK Hynix 1.79% lower.

SK Innovation, meanwhile, soared 11.97% and LG Chem was 0.62% firmer, after LG Energy Solutions - a spin-off from the latter - reached a settlement with SK Innovation on a dispute over trade secrets.

Oil prices were higher at the end of the Asian day, with Brent crude last up 0.41% at $63.21 per barrel, and West Texas Intermediate rising 0.25% to $59.47.

In Australia, the S&P/ASX 200 lost 0.3% to 6,974.00, while across the Tasman Sea, New Zealand’s S&P/NZX 50 closed down 0.44% at 12,518.71.

Both of the down under dollars were stronger on the greenback, with the Aussie last ahead 0.09% at AUD 1.3113, and the Kiwi advancing 0.11% to NZD 1.4206.