Hong Kongs Hang Seng index drops more than 2 China tech shares plunge as regulatory pressure lingers

SINGAPORE â€" Shares in Asia-Pacific were mixed in Monday morning trade, as Chinese tech stocks in Hong Kong plunged.

Hong Kong-listed shares of Chinese tech giant Tencent slipped 4.52% in Monday morning trade. Alibaba also dropped 3.61% while Meituan fell 4.69%. The Hang Seng Tech index plunged 4.34%.

Those losses came after China's antitrust regulator ordered Tencent to give up its exclusive music licensing rights and slapped a fine on it for anti-competitive behavior, marking yet another development in Beijing's ongoing crackdown on its domestic internet titans.

The broader Hang Seng index in Hong Kong fell 2.59%.

Mixed Asia-Pacific markets

Elsewhere, Asia-Pacific markets were mixed.

Returning to trade following holidays on Thursday and Friday, the Nikkei 225 in Japan jumped 1.22% in Monday morning trade while the Topix index advanced 1.21%.

Mainland Chinese stocks declined, with the Shanghai composite down about 1% while the Shenzhen component fell 1.064%.

South Korea's Kospi edged 0.31% lower. In Australia, the S&P/ASX 200 climbed fractionally.

MSCI's broadest index of Asia-Pacific shares outside Japan traded 1.14% lower.

On the economic data front, Singapore's industrial production figures for June are set to be out at 1:00 p.m. HK/SIN.

Covid in Asia

Investors likely continued to monitor the Covid situation in Asia as it weighs on sentiment.

In South Korea, the second highest level of virus restrictions will be applied to non-capital areas starting Tuesday, local agency Yonhap reported. Elsewhere, Tokyo's daily coronavirus tally has exceeded 1,000 for six days in a row, according to Kyodo News.

Indonesia on Sunday also extended its Covid restrictions by a week, according to Reuters. The country has been among multiple Southeast Asian nations that have been grappling with a resurgence in infections.

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On Friday, the Dow Jones Industrial Averaged closed above 35,000 for the first time ever while the S&P 500 jumped 1.01% to 4,411.79 and the Nasdaq Composite gained 1.04% to 14,836.99. Friday's moves upward saw all three major indexes stateside at new closing highs.

Currencies and oil

The U.S. dollar index, which tracks the greenback against a basket of its peers, was at 92.906 following a recent bounce from below 92.8.

The Japanese yen traded at 110.39 per dollar, weaker than levels below 110 seen against the greenback last week. The Australian dollar changed hands at $0.7352, above levels below $0.732 seen last week.

Oil prices were lower in the morning of Asia trading hours, with international benchmark Brent crude futures down 0.11% to $74.02 per barrel. U.S. crude futures slipped 0.18% to $71.94 per barrel.

Here's a look at what's on tap:

Singapore: Industrial production for June at 1:00 p.m. HK/SIN

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