Chinese stocks listed in the U.S. were mostly higher on Tuesday amid optimism around Beijing's decision to drop COVID-19 quarantine rules for inbound visitors, as the world's second-largest economy abandons its long-held "COVID Zero" policy.
But the slide in shares of EV makers like Tesla (TSLA) and a drop in Apple (AAPL) stock shows the all-clear hasn't yet been given on negative impacts from the Chinese economy.
And this divided reaction on Chinese stocks shows investors both holding out optimism about what the future has in store for business in China while also acknowledging the damage already done by the massive COVID-19 outbreak that has hit the country over the last month.
Shares of Chinese social network Weibo (WB) were up as much as 9% on Tuesday, while shares of Alibaba (BABA), JD.com (JD), and Tencent (TCEHY) all moved higher by more than 3%.
Outside China's consumer internet names, stocks like Wynn Resorts (WYNN) and Las Vegas Sands (LVS) were up more than 4%. Shares of Melco Resorts (MLCO) were up more than 8% on optimism for Macau's gaming sector after a challenging few years.
Crude oil was also higher by more than 1.5% on Tuesday, with WTI crude oil trading above $80 a barrel for the first time in three weeks amid hopes for increased global demand with China's economy reopening aggressively.
On the other hand, Apple shares were down as much as 1.5% on Tuesday, nearing their lowest level since June 2021 as concerns remain over the company's ability to keep pace with iPhone demand amid production disruptions in China.
Tesla shares fell more than 8% on Tuesday following reports production at its Shanghai factory had been suspended earlier than previously expected, with production in January also set to be reduced.
Shares of Chinese electric carmaker Nio (NIO) were also down more than 8% after the company said early Tuesday it was cutting its fourth quarter delivery forecasts due to disruptions related to China's outbreak of COVID-19.
Of course, for all of these companies, there is more to the story than a single headline about relaxed COVID rules in China.
Chinese consumer internet names were among the most harshly punished stocks dating back to early 2021 as investor pessimism about the Federal Reserve's response to inflation — i.e., significantly higher rates — set in. Recent rebounds in these names are chipping away at peak-to-trough declines that topped 70% earlier this year.
Apple, in contrast, has held up better in 2022 than its megacap peers like Microsoft (MSFT), Alphabet (GOOGL), Amazon (AMZN), and Meta Platforms (META). In a year when higher rates challenged valuations and concerns about the economy weighed on even the biggest companies in the market, Apple became a safe harbor for investors. As the year ends on an anxious note for U.S. investors, Apple too has proven sensitive to headlines around supply of its flagship product.
But Tuesday's market reaction offers a window into what appears set to be a key market storyline in early 2023, which is optimism about growth in China mixed with caution about a pandemic still raging in the country.
Click here for the latest stock market news and in-depth analysis, including events that move stocks
Read the latest financial and business news from Yahoo Finance
Download the Yahoo Finance app for Apple or Android
Follow Yahoo Finance on Twitter, Facebook, Instagram, Flipboard, LinkedIn, and YouTube
Related Quotes
(Bloomberg) — Apple Inc. shares closed at their lowest level since June 2021 on Tuesday, amid an ongoing selloff of big-tech stocks amplified by concerns over iPhone supply in the key holiday period.Most Read from BloombergMilan Reports 50% of Passengers on China Flights Have CovidSouthwest Air Memos Showed Growing Alarm on Eve of Epic Winter StormRussia Says Ukraine Must Surrender Even as Putin’s Army RetreatsSouth Korea Sends Drones to Kim Jong Un’s Airspace in Unprecedented MoveAlameda Lent
Once a symbol of extravagant wealth, $1 million is now the retirement-savings goal for millions of Americans. For retirees able to accumulate $1 million in savings, the funds translate into inflation-adjusted income of $40,000 in the first year of a three-decade retirement using the 4% spending rule. With the addition of the average annual Social Security payment for retirees of about $20,000, a $1 million nest egg can replace about 85% of a $70,000 median household income.
BOIL and KOLD may be for those investors who don’t get cold feet.
Yahoo Finance Live anchors Pras Subramanian and Seana Smith examine Tesla shares after EV production concerns arise from China.
U.S. stocks closed mixed Tuesday after Wall Street returned from the long holiday weekend to barrel through the final four trading days of 2022.
Kraken plans to stop operating in Japan at the end of January, the cryptocurrency exchange announced on Wednesday. It said it will also deregister there.
Kraken will deregister from the Financial Services Agency (JFSA) as of Jan. 31, by which time clients would have to withdraw their fiat and crypto holdings, it said in a statement. Kraken said it is fully funded to ensure that all affected clients could withdraw their assets in a timely manner. Last month, Kraken said it would reduce its workforce by 30%, or about 1,100 employees, as tough market conditions had crippled demand for digital assets.
To work out the break-even price of the trade, take the strike price of 26, plus and minus the total premium received of $1.97.
SHANGHAI (Reuters) -China's relaxation of COVID-19 rules for international arrivals has raised hopes that its multi-billion dollar travel business will soon flourish again but countries longing for the return of Chinese tourists will likely face more of a wait. China's National Health Commission announced on Monday that inbound travellers would no longer have to go into quarantine from Jan. 8. China was the world's largest outbound tourism market before COVID shut down global travel, with its overseas visitors spending $127.5 billion on travel in 2019.
The ripple effect of another major crypto exchange shuttering some operations is causing cryptocurrencies to struggle..
NVIDIA Corporation's ( NASDAQ:NVDA ) price-to-earnings (or "P/E") ratio of 62.8x might make it look like a strong sell…
NEW YORK (Reuters) -Oil prices settled lower on Wednesday as traders weighed concerns over a surge in COVID-19 cases in China, the world's top oil importer, against the chances easing pandemic restrictions in the country will boost fuel demand. Brent crude futures fell $1.07, or 1.3%, to settle at $83.26 a barrel, while U.S. West Texas Intermediate crude futures settled at $78.96 per barrel, down 57 cents, or 0.7%. China has said it will stop requiring inbound travellers to quarantine from Jan. 8, a major step towards relaxing stringent curbs on its borders.
Dozens of changes are coming to America's retirement landscape.
In this article, we discuss the 12 cheap value stocks to buy according to Warren Buffett. If you want to skip our discussion, go directly to 5 Cheap Value Stocks to Buy According to Warren Buffett. Warren Buffett and His Investment Strategy Warren Buffett is one of the most successful investors in the world and […]
The FDA accepts Kala Pharmaceuticals' (KALA) investigational new drug application for pipeline candidate KPI-012 for treating persistent corneal epithelial defect. Stock up.
In an email sent to staff on Wednesday and reviewed by Reuters, Musk said he believes that long term, Tesla will be the most valuable company on earth. He also urged employees to ramp up deliveries at the end of this quarter, after the automaker offered discounts on its vehicles in the United States and China.
Here, we pick three semiconductor stocks that are better buys than Micron Technology (MU), given its gloomy near-term prospects amid the declining demand for memory chips and recent restructuring plans.
Tesla investors already lost more than $700 billion on the stock this year. How much more can this S&P 500 stock drop?
The biotechnology space can be a difficult area to generate profits. Drugs take years to develop and often fail FDA approval. Today we will look at three top biotech stocks that are very profitable and have attractive future prospects.
Oil stocks dominate this list of today's fastest-growing stocks, all eyeing 100%-1,220% EPS gains this year.
