Didi’s New York delisting puts Asian stocks under pressure

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Ride-hailing company’s plan to list in Hong Kong renews fears about US-China tensions and tech regulation

A trader works during the IPO for Chinese ride-hailing company Didi Global Inc on the New York Stock Exchange floor in New York City, US, in this June 30 2021 file photo. REUTERS/BRENDAN MCDERMID

“Delistings starting to happen gives some jitters over the uncertainty as to how this impacts on the broader US-China picture,” said Bank of Singapore analyst Moh Siong Sim. Traders will need to wait at least another week or so for an early read on the variant’s virulence or vaccine resistance. US labour data due later on Friday is also in focus as a guide to rates.

Federal Reserve chair Jerome Powell said central bankers will talk about a faster pullback to bond buying at this month’s meeting and stop describing inflation as transitory. Oil cartel Opec is going ahead with planned production increases. The bond market’s response to Powell’s hawkish shift has been to jack up short-term rates and push down long ones, believing that sooner hikes will end up curbing future inflation and growth, and sharply flattening the US yield curve.

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