Asian Shares are Mixed After Wall St Powers to More Records, US-listed Chinese stocks Jump Premarket

Asian markets experienced a varied performance on Tuesday following another round of record highs on Wall Street, with Hong Kong's key index notably plunging by more than 4%. Meanwhile, U.S. futures showed a modest rise, while global oil prices took a substantial hit, shedding over $3 per barrel.

The mood in the region was dampened by discouraging news from China, where reports emerged late Monday revealing a significant drop in export growth for September, further underscoring concerns about the country's economic health. This development exacerbated the ongoing weakness in Chinese stocks, with the Shanghai Composite index sliding by 2.5% to 3,201.29, and the Hang Seng in Hong Kong recording a notable 4.4% decline to 20,166.88.

Market sentiment, already fragile, was further strained by disappointing data on lending and prices. Investors are eagerly awaiting fresh insights into the government's plans for economic stimulus to help rejuvenate the economy, a factor contributing to the hesitancy in the market.

Commenting on the situation, Yeap Jun Rong of IG emphasized the market's quest for clarity around fiscal support from Chinese authorities, noting that the lack of a firm commitment continues to hold back risk appetite in Chinese equities.

In contrast, Japan's Nikkei 225 index managed to buck the trend, posting a gain of 0.8% to reach 39,910.55, while South Korea's Kospi index also saw an uptick of 0.4% to 2,633.45. Down under, the S&P/ASX 200 in Australia climbed by 0.8% to reach 8,318.40.

On the currency front, the dollar dipped against the Japanese yen, weakening to 149.22 yen from its previous level of 149.83 yen, while the euro also slipped marginally, falling to $1.0894 from $1.0911.

In premarket trading, U.S.-listed Chinese EV stocks faced downward pressure, with names like NIO and XPeng seeing declines of over 3%. Noteworthy movements were also observed in other Chinese tech stocks, with Tiger Brokers dropping over 9%, while Bilibili, JD, Alibaba, and Pinduoduo all experiencing declines exceeding 4%.

In a surprising turn, Digital Brands Group Inc. (DBGI) emerged as a standout performer, soaring by more than 125% in premarket trading, showcasing a stark contrast to the broader market movements.