Investors Wait For London Calling
4 Min. Read Time
Key News
Asian equities were mostly higher overnight, with US-China trade talks in London drawing significant attention, though few concrete details have emerged so far.
Indonesia outperformed, along with Taiwan ahead of May sales data from Taiwan Semiconductor Manufacturing Company (TSMC). Several markets closed lower, including Hong Kong and Mainland China, which both declined in the afternoon as investors took profits. Pakistan’s market was closed for Eid al-Adha.
The renminbi (CNY) was slightly weaker against the United States dollar, as investors tempered their optimism about a potential trade deal in the absence of any major announcements. Notably, Hong Kong saw 308 advancing stocks versus 170 decliners, but internet heavyweights weighed on the indices.
It was a very light news day. Value stocks outperformed, while growth stocks were targeted for profit taking, with both Hong Kong and Mainland China giving up morning gains in the afternoon. Among Hong Kong-listed internet stocks, most declined except for KE Holdings, which gained +3.31% on news of Beijing’s housing support measures. BYD rose +3.71% in Hong Kong and +1.43% in Mainland China, outperforming the broader electric vehicle (EV), hybrid, and auto sectors, which remained under pressure due to price war concerns.
Internet regulators clarified live streaming rules, but this was widely expected and did not impact the market. One growth sector that continued to outperform was healthcare, with several companies posting double-digit daily returns. The rally in healthcare has been driven by cross-border deals, positive drug approvals, and broad policy support.
Mainland China was weaker overall, with the exception of banks, despite above-average volumes in exchange-traded funds (ETFs) favored by the so-called National Team. Despite this intervention, markets declined as investors waited for further news from London.
Last Night's Performance
| Country / Index | Ticker | 1-Day Change |
|---|---|---|
| China (Hong Kong) | HSI Index | -0.1% |
| Hang Seng Tech | HSTECH Index | -0.8% |
| Hong Kong Turnover | HKTurn Index | 1.8% |
| Hong Kong Short Sale Turnover | HKSST Index | -9.5% |
| Short Turnover as a % of Hong Kong Turnover | N/A | 13.9% |
| Southbound Stock Connect Net Buy/Sell (US $ Millions) | N/A | 0 |
| China (Shanghai) | SHCOMP Index | -0.4% |
| China (Shenzhen) | SZCOMP Index | -0.8% |
| China (STAR Board) | Star50 Index | -1.5% |
| Mainland Turnover | .chturn Index | 0% |
| Nouthbound Stock Connect Net Buy/Sell (US $ Millions) | N/A | Not Available |
| Jing Daily China Global Luxury Index | CHINALUX Index | 0% |
| Japan | NKY Index | 0.3% |
| India | SENSEX Index | -0.1% |
| Indonesia | JCI Index | 1.6% |
| Malaysia | FBMKLCI Index | -0.2% |
| Pakistan | KSE100 Index | 0.3% |
| Philippines | PCOMP Index | -0.9% |
| South Korea | KOSPI Index | 0.6% |
| Taiwan | TWSE Index | 2.1% |
| Thailand | SET Index | 0.3% |
| Singapore | STI Index | -0.1% |
| Australia | AS51 Index | 0.8% |
| Vietnam | VNINDEX Index | 0.4% |
| Indicator | A | Mainland China |
|---|---|---|
| Today's Volume % of 1-Year Average | 132% | 112% |
| Advancing Stocks | 308 | 1028 |
| Declining Stocks | 170 | 3990 |
| Outperforming Factors | Dividend Yield, Value, Low Volatility | Value, Dividend Yield, Low Volatility |
| Underperforming Factors | Growth, Liquidity, Momentum | Liquidity, Growth, Momentum |
| Top Sectors | Materials, Real Estate, Healthcare | Energy, Healthcare |
| Bottom Sectors | Tech, Communications, Staples | Tech, Communication, Staples |
| Top Subsectors | Non Ferrous Metals, Chemical Industry, Consumer Durables/Apparel | Port, Daily Chemical, Marine |
| Bottom Subsectors | Consumer Services, National Defense, Semis | Internet, Semis, Software |
| Southbound Connect Buys | Meituan (Large), CSPC Pharma (Moderate), Xtalpi (Small) | |
| Southbound Connect Sells | Alibaba, Tencent, Xiaomi (Large), Akeso, Kuiashou (Moderate), Pop Mart (Small) |
| MSCI China All Shares Index | # of Stocks | Average 1-Day Change (%) |
|---|---|---|
| Hong Kong Listed | 152 | -0.1 |
| Communication Services | 9 | -0.77 |
| Consumer Discretionary | 28 | -0.44 |
| Consumer Staples | 13 | -0.61 |
| Energy | 6 | 1.37 |
| Financials | 24 | 0.76 |
| Health Care | 12 | 1.84 |
| Industrials | 21 | 0.63 |
| Information Technology | 10 | -1.23 |
| Materials | 10 | 2.12 |
| Real Estate | 7 | 1.96 |
| Utilities | 12 | 0.56 |
| Mainland China Listed | 395 | -0.53 |
| Communication Services | 7 | -1.06 |
| Consumer Discretionary | 29 | -0.15 |
| Consumer Staples | 24 | -0.75 |
| Energy | 13 | 0.13 |
| Financials | 64 | -0.22 |
| Health Care | 32 | 0.04 |
| Industrials | 61 | -0.64 |
| Information Technology | 90 | -1.53 |
| Materials | 54 | -0.1 |
| Real Estate | 6 | -0.66 |
| Utilities | 15 | -0.13 |
| US & Hong Kong Dually Listed | Ticker | 1-Day Change (%) |
|---|---|---|
| Tencent HK | 700 HK Equity | -0.9 |
| Alibaba HK | 9988 HK Equity | -0.4 |
| JD.com HK | 9618 HK Equity | -1.6 |
| NetEase HK | 9999 HK Equity | -0.2 |
| Yum China HK | 9987 HK Equity | 1 |
| Baozun HK | 9991 HK Equity | 1.4 |
| Baidu HK | 9888 HK Equity | -0.5 |
| Autohome HK | 2518 HK Equity | 1.7 |
| Bilibili HK | 9626 HK Equity | 1.5 |
| Trip.com HK | 9961 HK Equity | -0.3 |
| EDU HK | 9901 HK Equity | 0.8 |
| Xpeng HK | 9868 HK Equity | 1.1 |
| Weibo HK | 9898 HK Equity | -0.4 |
| Li Auto HK | 2015 HK Equity | -2.8 |
| Nio Auto HK | 9866 HK Equity | 2 |
| Zhihu HK | 2390 HK Equity | 0.6 |
| KE HK | 2423 HK Equity | 3.3 |
| Tencent Music Entertainment HK | 1698 HK Equity | 2.4 |
| Meituan HK | 3690 HK Equity | -2.7 |
| Hong Kong's Most Heavily Traded by Value | 1-Day Change (%) |
|---|---|
| TENCENT HOLDINGS LTD | -0.9 |
| MEITUAN-CLASS B | -2.7 |
| ALIBABA GROUP HOLDING LTD | -0.4 |
| XIAOMI CORP-CLASS B | -1.3 |
| BYD CO LTD-H | 3.7 |
| KUAISHOU TECHNOLOGY | -1.4 |
| POP MART INTERNATIONAL GROUP | 3.2 |
| INNOVENT BIOLOGICS INC | 2.7 |
| CSPC PHARMACEUTICAL GROUP LT | 2.9 |
| AKESO INC | 10.4 |
| Shanghai and Shenzhen's Most Heavily Traded by Value | 1-Day Change (%) |
|---|---|
| HYGON INFORMATION TECHNOLO-A | 4.3 |
| EAST MONEY INFORMATION CO-A | -2.3 |
| BYD CO LTD -A | 1.4 |
| VICTORY GIANT TECHNOLOGY -A | 3.8 |
| ZHONGJI INNOLIGHT CO LTD-A | -0.7 |
| ANHUI JIANGHUAI AUTO GROUP-A | 1.8 |
| SHENZHEN FORMS SYNTRON INF-A | 1.8 |
| KWEICHOW MOUTAI CO LTD-A | -0.7 |
| EOPTOLINK TECHNOLOGY INC L-A | -1.3 |
| HEBEI CHANGSHAN BIOCHEMICA-A | -3.1 |
Last Night’s Exchange Rates, Prices, & Yields
- CNY per USD 7.18 versus 7.18 yesterday
- CNY per EUR 8.20 versus 8.19 yesterday
- Yield on 10-Year Government Bond 1.66% versus 1.66% yesterday
- Yield on 10-Year China Development Bank Bond 1.71% versus 1.70% yesterday
- Copper Price +0.58%
- Steel Price -0.17%
