- Asia-Pacific stocks mostly slipped on Thursday.
- In Hong Kong, shares of Tencent and Netease plunged after Chinese state media reported that the two were among video game firms summoned to a meeting with regulators.
- Sentiment on the sector took a further hit after the South China Morning Post reported the Chinese government temporarily suspended approval for all new online games.
SINGAPORE — Hong Kong stocks dropped on Thursday, with shares in the rest of Asia-Pacific also largely declining.
Chinese state media reported that the two were among video game firms summoned to a meeting with regulators. Issues discussed during the meeting included reminding them of restrictions on game time for children.
Sentiment on the sector took a further hit after the South China Morning Post reported Thursday afternoon that the Chinese government temporarily suspended approval for all new online games. The SCMP later issued a correction after the market close to clarify regulators are slowing the approvals process, rather than suspending it.
Private education stocks also took a beating after China's Wednesday ban on private tutors giving classes online or in unregistered venues. New Oriental Education & Technology's stock plunged 5.45%, while smaller rival Koolearn Technology fell 4.66%.
Meanwhile, shares of China Evergrande Group in Hong Kong pared earlier losses to drop 4.31% as uncertainty continues to surround the embattled property developer's debt situation.
The broader Hang Seng index in Hong Kong dropped 2.3% on the day to 25,716.
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China's consumer price index rose 0.8% year-on-year in August, compared to expectations for a 1% increase in a Reuters poll. Meanwhile, the producer price index jumped 9.5% from a year ago, as compared to forecasts of a 9% rise in a Reuters poll.
In Australia, the S&P/ASX 200 fell 1.9% to close at 7,369.50.
MSCI's broadest index of Asia-Pacific shares outside Japan dropped 1.26%.
Overnight stateside, the Dow and S&P 500 fell for a third straight day, while the Nasdaq dropped for its first session in five. The Dow Jones Industrial Average shed 68.93 points to 35,031.07 while the S&P 500 dipped 0.13% to 4,514.07. The Nasdaq Composite declined 0.57% to 15,286.64.
The U.S. dollar index, which tracks the greenback against a basket of its peers, was at 92.684 following its climb earlier in the week from below 92.4.
The Japanese yen traded at 110 per dollar, stronger than levels around 110.4 seen against the greenback yesterday. The Australian dollar changed hands at $0.7368, lower than levels above $0.74 seen earlier this week.
Oil prices were higher in the afternoon of Asia trading hours, with international benchmark Brent crude futures rising 0.15% to $72.71 per barrel. U.S. crude futures gained about 0.1% to $69.34 per barrel.