Asian equities were mostly higher following a week of geopolitical tensions, with steel names relatively unaffected by Biden’s tariff proposal. JD.com announced a massive share repurchase program, but still fell slightly in Hong Kong. Hong Kong rebounded with financials and real estate leading the way, while Mainland investors bought a net $848 million worth of Hong Kong-listed stocks. Shanghai, Shenzhen, and the STAR Board had mixed performances, with foreign investors selling a net -$734 million worth of Mainland-listed stocks. CNY held steady at 7.24 per USD, while Treasury bonds rallied slightly, and copper gained while steel fell.
A webinar on China Q1 Review and investment strategies is scheduled for today, and another webinar on normalization is scheduled for April 24th. A new article on generative AI’s impact on China’s internet giants is also available for reading. Last night’s exchange rates, prices, and yields showed CNY per USD at 7.24, yield on 1-Day Government Bond at 1.37%, yield on 10-Year Government Bond at 2.25%, yield on 10-Year China Development Bank Bond at 2.32%, copper price up by 1.62%, and steel price down by 0.19%.
The tariff proposal by Biden did not have a significant impact on Chinese steel producers due to the relatively small market share in the US. Analysts believe that increasing tariffs amid high inflation rates in the US may not be beneficial and could potentially be walked back in the future. JD.com’s share repurchase program demonstrates confidence in its own performance, despite a slight dip in Hong Kong trading. Hong Kong’s rebound was driven by positive policy indications in the financial and real estate sectors, as well as expectations for higher demand in home appliances.
During the previous session, Hang Seng and Hang Seng Tech indexes closed higher, while Shanghai, Shenzhen, and the STAR Board had mixed performances. Mainland investors showed interest in Hong Kong-listed stocks, while foreign investors sold Mainland-listed stocks via Northbound Stock Connect. Financials, materials, and consumer discretionary sectors performed well, while utilities, energy, and healthcare sectors saw declines. CNY remained stable against the USD, while copper prices rose and steel prices fell slightly.
Despite the geopolitical tensions earlier in the week, calm has been restored in global markets, allowing Asian equities to rebound. The focus now shifts to potential easing of tariffs and positive policy indications driving the financial and real estate sectors in Hong Kong. Investor interest in Mainland-listed stocks and positive performance in various sectors suggest a positive outlook for the coming sessions. With upcoming webinars on China’s Q1 review and investment strategies, investors are eager to gain insights into the current market climate and investment opportunities.
