Asian Stock Markets Mixed on Pandemic Outlook, Wall Street Listing Issues

Asian stock markets were choppy on Friday, as traders weighed the omicron variant of the COVID-19 virus and the possible de-listing of China issues from the New York Stock Exchange under new rules promulgated in Beijing and by the SEC.

Hong Kong slipped but Shanghai and Tokyo gained, while other regional exchanges were mixed.

In Japan, the Nikkei 225 opened lower but rallied in the afternoon, finishing up 1% after drugmaker Merck MRK applied to the nation's health ministry for a license to sell its oral medication to treat COVID-19 symptoms. Traders also bargain-hunted after recent declines on refreshed pandemic concerns.

The benchmark Nikkei 225 rose 276.20 to 28,029.57, as gaining issues outnumbered losers 210 to 15. The Nikkei 225 is up 2.1% year-to-date.

In other news, the seasonally adjusted au Jibun Japan Services Business Activity Index rose to 53.0 in November from 50.7 in October, signaling the strongest business expansion of the sector in 27 months, reported the bank. Readings above 50 on the index indicate a sector in expansion, while below 50 points to contraction.

Separately, the au Jibun Bank Japan Composite Purchasing Manager's Index Output Index rose to 53.3 in November from 50.7 in October, also "signaling a stronger rise in private sector output," the bank said. The composite is a combination of the manufacturing and services sectors PMIs.

Meanwhile, the Hong Kong Hang Seng Index opened lower and could not recover, finishing off 0.1% on concerns about possible de-listing of China-based tech issues on Wall Street.

The Securities and Exchange Commission moved closer on Thursday to printing rules that would force Chinese companies to comply with US audit requirements or face de-listing, while Beijing has required ride-hailing service Didi Global (DIDI) to de-list from Wall Street on concerns about security breaches.

The broad gauge Hang Seng fell 22.24 to 23,766.69, although gaining issues outnumbered losers 42 to 17. The Hang Seng TECH Index fell back 1.5%, while the Mainland Properties Index was steady.

The Hang Seng is off 12.7% year-to-date.

On the mainland, the Shanghai Composite rose 0.9% to 3,607.43.

In other news, the November Caixin China General Services Purchasing Managers' Index fell to 52.1 in November from 53.8 in October, reported IHS Markit.

On the other exchanges, the S. Korean KOSPI rose 0.8%; the Taiwan TWSE declined 0.2%; the Australian ASX 200 inclined 0.2%; the Singapore Straits Times Index rose 0.3%, and the Thai Set declined 0.2%. In late trading in Mumbai, the Sensex was off 1.3%.