Chinese chip stocks drop, Hang Seng down 2%

Shares of the largest chip maker in China SMIC fell after Washington announced new export controls that would Limit Beijing’s ability to purchase and manufacture high-quality chips used in military equipment.

SMIC stock fell 5.23% before recovering slightly. It was last traded down 2.91%.

Foreign Ministry spokesman Mao Ning said at a press conference on Saturday that the United States is “abusing export control measures to arbitrarily obstruct and obstruct Chinese companies. Such practice is inconsistent with the principle of fair competition and international trade rules.”

– Abigail Ng

A week after its stock market debut, luxury carmaker Porsche’s market capitalization has surpassed its former parent company Volkswagen Group.

Some fund managers are already comparing the German company to Teslathe world’s largest electric car maker, said Porsche’s electrification plan for its best-selling Macan EV is expected to be an immediate success.

Compared to its parent company Volkswagen, which makes nearly 10 million cars a year, Porsche makes just over 300,000 but accounts for a quarter of Volkswagen’s profits.

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– Ganesh Rao

The Korean won was among those who lost ground against the US dollar in Asian morning trade.

The South Korean currency It was last traded at 1,427.76 per dollar after consolidating below the 1400 level last week.

Japan yen Weak slightly to 145.46 against the dollar, while Australian dollar It was boosted to $0.6370.

The offshore Chinese yuan was hovering around 7.1319 per dollar.

– Abigail Ng

As Europe grapples with high electricity and gas bills, Goldman Sachs says global companies focused on energy efficiency will outperform.

“We believe that energy efficiency companies can outperform in the short term, focusing on energy efficiency to address the current energy crisis that followed the Russian invasion of Ukraine,” the analysts wrote in an October 3 note.

“[And] In the long term, with a focus on energy efficiency to tackle climate change and reach ambitious “net zero” goals.

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– Weezin Tan

The Caixin Services Purchasing Managers’ Index came in at 49.3 in September, according to a report published on Saturday, down sharply from 55 in August.

The 50 point mark separates growth from contraction. PMI readings compare activity from month to month.

The report said that Covid restrictions in the country caused service activity in China to shrink in September for the first time since May.

“Companies that have reported reduced activity have repeatedly commented that the pandemic and subsequent measures to contain the virus restricted operations and weighed on demand in September,” said Caixin’s press release.

– Abigail Ng