The Betashares Asia Technology Tigers ETF (ASX: ASIA) is having a strong finish to the week.
In afternoon trade, the popular tech ETF is up over 4% to $7.12.
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Why is the Betashares Asia Technology Tigers ETF storming higher today?
Investors have been buying the Betashares Asia Technology Tigers ETF today after Asian shares raced higher. This has seen Hong Kong's Hang Seng index rise an impressive 3% today.
As well as getting a boost from a positive night of trade on Wall Street's Nasdaq index, the Hang Seng has been given a big lift from a strong update from ecommerce giant Alibaba.
Alibaba, which is included in the Betashares Asia Technology Tigers ETF, is up over 12% in Hong Kong after posting fourth-quarter revenue of US$32.2 billion and earnings per share of 16 US cents. This was ahead of analyst expectations for revenue of US$30.8 billion and earnings per share of 14 US cents.
This has given the Asian tech sector a much-needed sentiment boost, which has led to other Betashares Asia Technology Tigers ETF holdings rising strongly today.
Here's a summary of some of the key moves:
- The Baidu share price is up 14%
- The JD.com share price is up 5%
- The Netease share price is up 4%
- The Tencent Holdings share price is up 2.5%
What else?
Also potentially giving the sector a lift is news that Chinese authorities held an unprecedented nationwide online meeting in a bid to bolster an economy battered by COVID-19.
According to CNBC, Premier Li Keqiang warned of difficulties "even greater than the severe shock of the pandemic in 2020" and urged officials to "work hard" to deliver growth in the second quarter and a drop in unemployment. Investors appear optimistic that this pep talk will get the Chinese economy pumping again.
So, with the Betashares Asia Technology Tigers ETF trading 25% lower in 2022 even after this gain, some investors may believe the tide is finally turning for these tigers and are loading up on the ETF today.
