No Fed Fear In Asia Trading
5 Min. Read Time
Key News
Asian equities had a positive day after the US Fed rate hike on light volumes, led by Indonesia. Both Hong Kong, which raised interest rates following the Fed's move, and Mainland China opened lowe, though managed to grind higher to mitigate losses as the Hang Seng's intraday low was -1.44% versus its close of -0.44. The Hang Seng Tech Index's intraday low was -1.64% versus a close of -0.34%, Shanghai's was -0.63% versus a close of -0.41%, Shenzhen's was -0.64% versus a close of -0.21%, and Mainland China's Science and Technology (STAR) Board's was -1.07% versus a close of -0.61%. However, volumes were light!
Precious metals and oil and gas were weak in both markets. Meanwhile, AI supply chain stocks were mostly lower. However, Hong Kong-listed communication equipment stocks were higher, led by YOFC, which gained +4.18%, while Hong Kong electronic equipment was lower. Similarly, in Mainland China, communication equipment stocks were higher, though electronic equipment, semiconductors, and semiconductor equipment were all lower. Mainland-listed machinery stocks outperformed, as Premier Li spoke at the two-day National Advanced Manufacturing Conference in Beijing.
AI model provider Z.AI gained +2.78% and was Hong Kong's most heavily-traded stoock by value, for the second day in a row, after yesterday's higher revenue guide. The stock also enjoyed another day of strong inflow from Mainland investors. Peer Minimax gained +7.06% after announcing August revenue was $800 million. Meituan fell -2.08%, despite Yicai reporting the delivery company started drone delivery in Shanghai, after rolling it out in Shenzhen. Hong Kong-listed internet stocks were lower, as Tencent fell -1.71% and Alibaba fell -1.04%. Mainland investors bought a net $428 million worth of Hong Kong-listed stocks today, extending the net buy streak to 9 days in a row and 16 of the last 17 trading days. The Mainland-listed domestic equity ETFs favored by China's "National Team", i.e. investment firms associated with China's sovereign wealth, had average volumes but another day of inflows.
The Ministry of Commerce's press conference included a question on both the US and China reducing the reciprocal tariffs on $30 billion worth of goods. While stating that talks were progressing, I assume this will be announced next week by President Trump and President Xi. The South China Morning Post repored that executives from BYD, Xiaomi, and Zhongji Innolight are likely to join President Xi on his US visit. Bloomberg also reported that BYD's CEO may attend, amid speculation of a partnership with Ford. Against the backdrop of exceedingly light positioning, the market does not appear to be anticipating a better-than-expected Trump-Xi meeting, though the tea leaves point in that direction.
Reuters is reporting, "China presses Iran to help rein in Houthis after Saudi appeal."
Hong Kong Buybacks announced after the close: Tencent with 235,000 shares, Baidu with 575,300 shares, and Kuaishou with 501,000 shares.
Last Night's Performance
| Country / Index | Ticker | 1-Day Change |
|---|---|---|
| China (Hong Kong) | HSI Index | -0.4% |
| Hang Seng Tech | HSTECH Index | -0.3% |
| Hong Kong Turnover | HKTurn Index | 2.5% |
| Hong Kong Short Sale Turnover | HKSST Index | 25.2% |
| Short Turnover as a % of Hong Kong Turnover | N/A | 0.2 |
| Southbound Stock Connect Net Buy/Sell (US $ Millions) | N/A | 429.52 |
| China (Shanghai) | SHCOMP Index | -0.4% |
| China (Shenzhen) | SZCOMP Index | -0.2% |
| China (STAR Board) | Star50 Index | -0.6% |
| Mainland Turnover | .chturn Index | -1.4% |
| Japan | NKY Index | 0.3% |
| India | SENSEX Index | 0% |
| Indonesia | JCI Index | 0.4% |
| Malaysia | FBMKLCI Index | -0.3% |
| Pakistan | KSE100 Index | 0.6% |
| Philippines | PCOMP Index | 0.7% |
| South Korea | KOSPI Index | 0% |
| Taiwan | TWSE Index | 1% |
| Thailand | SET Index | 1.3% |
| Singapore | STI Index | 0.4% |
| Australia | AS51 Index | 0.4% |
| Vietnam | VNINDEX Index | 0.7% |
| Indicator | Hong Kong | Mainland China |
|---|---|---|
| Today's Volume % of 1-Year Average | 69 | 74 |
| Advancing Stocks | 226 | 2324 |
| Declining Stocks | 335 | 2654 |
| Outperforming Factors | Growth, Liquidity, Momentum | None |
| Underperforming Factors | Dividend Yield, Low Volatility, Value | EPS Revision, Growth, Large Caps |
| Top Sectors | Healthcare, Industrials, Tech | Discretionary, Energy, Staples |
| Bottom Sectors | Materials, Energy, Communication | Materials, Tech, Utilities |
| Top Subsectors | Auto, Pharmaceutical, Paper/Packaging | Marine, Heavy Machinery, Agricultural |
| Bottom Subsectors | Petroleum/Petrochemical, Non Ferrous Metal, Building | Precious Metals, Base Metals, Oil/Gas |
| Southbound Connect Buys | Z AI (Large), KB Laminates (Moderate), Tencent (Small) | N/A |
| Southbound Connect Sells | Alibaba, CNOOC (Moderate), SMIC (Small) | N/A |
| MSCI China All Shares Index | # of Stocks | Average 1-Day Change (%) |
|---|---|---|
| Hong Kong Listed | 165 | -0.52 |
| Communication Services | 11 | -1.5 |
| Consumer Discretionary | 28 | -0.7 |
| Consumer Staples | 13 | 0.28 |
| Energy | 6 | -1.55 |
| Financials | 25 | 0.01 |
| Health Care | 16 | 1.68 |
| Industrials | 22 | 0.84 |
| Information Technology | 12 | 0.31 |
| Materials | 14 | -1.89 |
| Real Estate | 7 | -0.85 |
| Utilities | 11 | -1.06 |
| Mainland China Listed | 386 | -0.48 |
| Communication Services | 8 | -0.04 |
| Consumer Discretionary | 26 | 0.97 |
| Consumer Staples | 19 | 0.39 |
| Energy | 12 | 0.67 |
| Financials | 64 | -0.52 |
| Health Care | 31 | 0.26 |
| Industrials | 58 | 0.08 |
| Information Technology | 95 | -0.76 |
| Materials | 52 | -1.73 |
| US & Hong Kong Dually Listed | Ticker | 1-Day Change (%) |
|---|---|---|
| Tencent HK | 700 HK Equity | -1.7 |
| Alibaba HK | 9988 HK Equity | -1 |
| JD.com HK | 9618 HK Equity | -0.8 |
| NetEase HK | 9999 HK Equity | -0.9 |
| Yum China HK | 9987 HK Equity | -0.3 |
| Baozun HK | 9991 HK Equity | 0.1 |
| Baidu HK | 9888 HK Equity | -0.8 |
| Autohome HK | 2518 HK Equity | 1.4 |
| Bilibili HK | 9626 HK Equity | -3 |
| Trip.com HK | 9961 HK Equity | -2 |
| EDU HK | 9901 HK Equity | -0.4 |
| Xpeng HK | 9868 HK Equity | 1.9 |
| Weibo HK | 9898 HK Equity | -0.8 |
| Li Auto HK | 2015 HK Equity | 0.9 |
| Nio Auto HK | 9866 HK Equity | -1.5 |
| Zhihu HK | 2390 HK Equity | 2.1 |
| KE HK | 2423 HK Equity | 0.1 |
| Tencent Music Entertainment HK | 1698 HK Equity | -0.7 |
| Meituan HK | 3690 HK Equity | -2.1 |
| Hong Kong's Most Heavily Traded by Value | 1-Day Change (%) |
|---|---|
| Z AI CO LTD | 2.8 |
| TENCENT HOLDINGS LTD | -1.7 |
| ALIBABA GROUP HOLDING LTD | -1 |
| KINGBOARD LAMINATES HLDG LTD | -1.9 |
| YANGTZE OPTICAL FIBRE AND-H | 4.2 |
| MINIMAX GROUP INC | 7.1 |
| HONG KONG EXCHANGES & CLEAR | -1.8 |
| XIAOMI CORP-CLASS B | -0.2 |
| GENSCRIPT BIOTECH CORP | 14.3 |
| SEMICONDUCTOR MANUFACTURI-H | -2 |
| Shanghai and Shenzhen's Most Heavily Traded by Value | 1-Day Change (%) |
|---|---|
| ZHONGJI INNOLIGHT CO LTD-A | -1.3 |
| CHINA JUSHI CO LTD -A | -0.5 |
| HENGTONG OPTIC-ELECTRIC CO-A | 4.7 |
| EOPTOLINK TECHNOLOGY INC L-A | 0.2 |
| BOE TECHNOLOGY GROUP CO LT-A | 5.5 |
| SHENGYI TECHNOLOGY CO LTD -A | -5.5 |
| SUZHOU TFC OPTICAL COMMUNI-A | 3.4 |
| SUZHOU DONGSHAN PRECISION-A | 0.8 |
| ACCELINK TECHNOLOGIES CO -A | 3.2 |
| CXMT CORP-A | -3 |
Last Night's Exchange Rates, Prices, & Yields
- CNY per USD 6.70 versus 6.70 yesterday
- CNY per EUR 7.69 versus 7.73 yesterday
- Yield on 10-Year Government Bond 1.69% versus 1.69% yesterday
- Yield on 10-Year China Development Bank Bond 1.76% versus 1.76% yesterday
- Copper Price 0.63%
- Steel Price 0.06%
