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Chinese tech stocks mostly rise as Meituan jumps more than 11% in mixed Asia trading

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SINGAPORE — Shares in Chinese tech firms mostly rose in mixed Asia-Pacific trading on Monday, with oil prices falling more than 2%.

By Monday morning in Hong Kong, shares of Meituan soared 14.37% while Tencent climbed 3.82%.

Meituan on Friday posted better-than-expected revenue for the last three months of 2021. The company’s revenue for the fourth quarter came in at 49.52 billion yuan ($7.78 billion), above mean analyst expectations for a 49.2 billion yuan print, according to data from Refinitiv Eikon.

The Hang Seng Tech index recovered from earlier losses as it gained 3.05%. Some Chinese tech stocks, however, slipped: Xiaomi edged 0.28% lower while JD.com dropped 2.01%.

“Even if you look now, where we see very significant and sharp falls so that valuations now are at much more reasonable levels, I think it’s still quite difficult for investors … to really build the courage to go back in at these levels,” Mark Konyn, group chief investment officer at AIA, told CNBC’s “Squawk Box Asia” on Monday.

The broader Hang Seng index in Hong Kong advanced 1.3%.

Mixed Asia-Pacific markets

The broader Asia-Pacific markets struggled for direction in Monday trade.

Mainland China’s Shanghai composite slipped 0.13% while the Shenzhen component shed 1.066%.

Data released over the weekend showed Chinese industrial profits grew in the first two months of the year. Profits at China’s industrial firms rose 5.0% for the January to February period as compared with a year earlier, according to data released Sunday.

Investors have been watching for clues on policy easing from Chinese authorities amid concerns over the outlook for the economic powerhouse as it grapples with issues such as its worst Covid outbreak since the initial height of the pandemic in early 2020.

In Japan, the Nikkei 225 slipped 0.47% while the Topix index ticked 0.13% lower. South Korea’s Kospi gained 0.13%.

In Australia, the S&P/ASX 200 gained 0.22%. Singapore’s Straits Times index also climbed 0.35%.

MSCI’s broadest index of Asia-Pacific outside Japan traded below the flatline.

Oil prices declined in the afternoon of Asia trading hours, with international benchmark Brent crude futures down 2.61% to $117.50 per barrel. U.S. crude futures slipped 2.96% to $110.53 per barrel.

Currencies

The U.S. dollar index, which tracks the greenback against a basket of its peers, was at 99.114 following a recent climb from below 98.7.

The Japanese yen traded at 123.04 per dollar, weaker than levels below 120 seen against the greenback last week. The Australian dollar was at $0.7527, having risen from below $0.74 last week.

Correction: This article was updated to accurately reflect the moves of the Japanese yen during Asia trading hours on Monday.

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