Asia-Pacific Shares Rebound after NYSE Cancels Plans to Delist Three Chinese Telecom Giants

The major Asia-Pacific stock indexes were mixed on Tuesday in a volatile news-driven session. The benchmarks initially fell on Tuesday amid uncertainty about Senate runoffs in Georgia, which could have a big impact on incoming U.S. President Joe Biden’s economic policies, but found support later in the session after shares of Chinese telecommunications giants surged after the New York Stock Exchange announced it will no longer delist the firms.

In the cash market on Tuesday, Japan’s Nikkei 225 Index settled at 27158.63, down 99.75 or -0.37%. South Korea’s KOSPI Index finished at 2990.57, up 46.12 or +1.57% and Hong Kong’s Hang Seng Index closed at 27649.86, up 177.05 or +0.64%.

In China, the benchmark Shanghai Index settled at 3528.68, up 25.72 or +0.73% and in Australia, the S&P/ASX 200 Index finished at 6681.90, down 2.30 or -0.03%.

Investors Watching US Runoff Elections

In the United State, control of the Senate is at stake with Tuesday’s dual runoff elections in Georgia.

A Democratic victory in both races could tip control of the Senate away from Republicans, but both contests are very tight and the results may not be immediately known, which could lead to a repeat of the chaotic vote re-counts after the U.S. presidential election last year.

“2021 starts with a bang with pivotal political and economic news for markets to digest. The undisputed highlight will be the result of the Senate seat run-off elections in Georgia,” James Knightley, chief international economist at ING, wrote in a research memo.

“If the Democrats win both seats this should lead to the most substantial 2021 fiscal stimulus. Nonetheless, it could be the excuse for a near-term consolidation in risk markets after a strong post-election rally.”

NYSE Says It Will No Longer Delist Three Chinese Telecom Giants

Hong Kong-listed shares of China Mobile soared 5.13% while China Unicom surged 8.5% and China Telecom’s stock jumped 3.35% after the New York Stock Exchange said it no longer plans to delist the three Chinese telecommunications giants.

In a late Monday statement, the NYSE said it dropped the plans after “further consultation with relevant regulatory authorities in connection with [the] Office of Foreign Assets Control.”

The announcement comes after the NYSE said on December 31 that it would move to delist American depositary shares of China Telecom, China Mobile and China Unicom.

The NYSE had originally planned to drop the Chinese telecom listings in order to comply with an executive order that President Donald Trump signed in November. That order sought to bar American companies and individuals from investing in firms that the Trump administration alleged aid the Chinese military.

On Monday, the China Securities Regulatory Commission said the executive order was based on “political purposes” and “entirely ignored the actual situations of relevant companies and the legitimate rights of the global investors, and severely damaged market rule and order.”