Hong Kong tech stocks drag market down 2%; Asia markets drop

Shares in the Asia-Pacific fell on Monday, with Hong Kong’s Hang Seng leading losses as Chinese chip stocks listed in the city plunged following new export rules from the U.S. China’s largest chipmaker Semiconductor Manufacturing International Corporation fell as much as 5.23%, while Hua Hong Semiconductor dropped more than 10% and Shanghai Fudan Microelectronics Company plunged as low as 24.6% during morning trade. The broader Hang Seng index was 2.95% lower at 17,216.66, with the Hang Seng Tech index down 3.98%. HSI heavyweight Meituan fell 6.71%. In mainland China, the Shanghai Composite lost 1.66% to 2,974.15 on its first day of trade after the Golden Week holiday, while the Shenzhen Component dropped 2.38% to 10,522.12. The CSI 300 index, which tracks the largest mainland-listed stocks, slipped 2.21% to 3,720.94. The S&P/ASX 200 was 1.62% lower at 6,667.80. MSCI’s broadest index of Asia-Pacific shares outside Japan traded 1.88% lower. Markets in Japan, South Korea, Taiwan and Malaysia are closed for holidays Monday. Later this week, the Bank of Korea will announce its benchmark interest rate decision, Singapore is set to announce its GDP estimate for the third quarter and China releases inflation data. Taiwan Semiconductor Manufacturing Company and Japan’s Fast Retailing will report earnings and the U.S. will release inflation data for September. On Friday in the U.S., major stock indexes dropped more than 2% after data showed the unemployment rate declined in September, sparking fear that the Federal Reserve would continue hiking rates aggressively.