SMIC slumps, SoftBank drops in mixed Asia markets

SMIC slumps, SoftBank drops in mixed Asia markets

Asia Markets

SMIC shares plunge in Hong Kong after threat of U.S. export restrictions

Boats travel on the Huangpu River in front of the Shanghai skyline..

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Asian markets were mixed Monday, following a sharp selloff on Wall Street last week.

Japan’s Nikkei 225

dipped 0.5% while Hong Kong’s Hang Seng index

fell 0.4%. The Shanghai Composite

declined 1.9% while the smaller-cap Shenzhen Composite

dropped 2.2%.

South Korea’s Kospi

rose 0.7%, while benchmark indexes in Taiwan

, Singapore

and Indonesia

were mixed. Australia’s S&P/ASX 200

rose 0.3%.

Data showed China’s August exports were stronger than expected from the prior year, after another strong increase in July.

Shares of Chinese chip maker Semiconductor Manufacturing International Corp.

tumbled in Hong Kong trading after a Wall Street Journal report that the Trump administration is considering placing export restrictions against it, as it has with fellow chip maker Huawei Technologies.

SoftBank Group

shares dropped over 7% on Monday after The Wall Street Journal reported the Japanese investment group bought $4 billion worth of options tied to around $50 billion worth of individual tech stocks.

U.S. markets are closed Monday for the Labor Day holiday. Last week, the tech-heavy Nasdaq Composite

saw a 3.3% weekly decline, its largest since March, while the Dow Jones Industrial Average

fell 1.8% and the S&P 500

lost 2.3%.

“We view the latest selloff as a bout of profit-taking after a strong run,” said Mark Haefele, chief investment officer at UBS Global Wealth Management, in a note Friday.

“Stocks have had a nervy start to trading Monday after the massive two-day slide for global equities since June left investors on edge,” Stephen Innes, chief global markets strategist at AxiCorp, wrote in a note Monday. “In the short-term, more so with U.S. markets closed today, it should remain an extremely choppy affair, with bounces likely being sold by design.”

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