Supreme Reaction to Supreme Court Ruling
4 Min. Read Time
Key News
Asian equities cheered the Supreme Court’s tariff decision, lifting stock regionally, except for Pakistan, which underperformed, while Mainland China remained closed for New Year’s and Japan was closed for the Emperor’s Birthday.
Hong Kong had a strong day in that was almost the exact opposite of Friday’s decline and value outperformance. Growth stocks outperformed today less the two AI names that outperformed Friday as Knowledge Atlas fell -22% and Minimax fell -13%. The Hang Seng Index closed above big round number of 27,000, led by Tencent, which gained +3.07%, Alibaba, which gained +3.47%, and Meituan, which gained +5.26%. Volumes were light as Mainland China and Southbound Stock Connect are still closed until tomorrow, though it was a very broad rally. Internet, tech hardware, electric vehicles, metals, insurance and semiconductors all outperformed.
My large option trading monitor noted primarily put buying on large stocks less Baidu’s March call buying. A Mainland media source noted that IPO lock ups will be expiring in March for a host of companies allowing cornerstone investors to sell. The most vulnerable stocks appears to be Butong Group, which has nearly 85% market cap becoming available to sale on March 23rd after the stock rose 94%. Mixue Group (2097 HK), Zijin Gold (2259 HK), Chery Group (9973 HK), and Nanshan Aluminum (2610 HK) are among the companies with lock ups expiring.
German Chancellor Scholz will visit China later this week. President Trump will arrive in China on March 31st.
The Financial Times has an interesting article titled “Behind Trump’s truce with China”, which notes the President’s more conciliatory attitude towards China. The article is almost a fight against that change, quoting numerous China hawks and DC-based policy tank “experts” (anyone ever look at who funds these think tanks?). Any businesspeople quoted? Nope. Big government spending advocates are apt to fight the President’s China policy. I would expect politicians from Virginia and Maryland, two states highly dependent on DC spending due, to lead the fight.
Last Night's Performance
| Country / Index | Ticker | 1-Day Change |
|---|---|---|
| China (Hong Kong) | HSI Index | 2.5% |
| Hang Seng Tech | HSTECH Index | 3.3% |
| Hong Kong Turnover | HKTurn Index | 4.6% |
| Hong Kong Short Sale Turnover | HKSST Index | -18% |
| Short Turnover as a % of Hong Kong Turnover | N/A | 18.7% |
| Southbound Stock Connect Net Buy/Sell (US $ Millions) | N/A | Closed |
| China (Shanghai) | SHCOMP Index | Closed |
| China (Shenzhen) | SZCOMP Index | Closed |
| China (STAR Board) | Star50 Index | Closed |
| Mainland Turnover | .chturn Index | Closed |
| Japan | NKY Index | Closed |
| India | SENSEX Index | 0.6% |
| Indonesia | JCI Index | 1.5% |
| Malaysia | FBMKLCI Index | 0.3% |
| Pakistan | KSE100 Index | -3.6% |
| Philippines | PCOMP Index | 0.4% |
| South Korea | KOSPI Index | 0.6% |
| Taiwan | TWSE Index | 0.5% |
| Thailand | SET Index | 0% |
| Singapore | STI Index | 0.5% |
| Australia | AS51 Index | -0.6% |
| Vietnam | VNINDEX Index | 2% |
| Indicator | Hong Kong | Mainland China |
|---|---|---|
| Today's Volume % of 1-Year Average | 67 | Closed |
| Advancing Stocks | 427 | Closed |
| Declining Stocks | 62 | Closed |
| Outperforming Factors | Liquidity, Growth, Large Caps | Closed |
| Underperforming Factors | Value | Closed |
| Top Sectors | Materials, Consumer Discretionary, Information Technology | Closed |
| Bottom Sectors | Energy, Utilities, Industrials | Closed |
| Top Subsectors | Non Ferrous Metals, Auto, Tech Hardware | Closed |
| Bottom Subsectors | Paper/Packaging | Closed |
| Southbound Connect Buys | N/A | N/A |
| Southbound Connect Sells | N/A | N/A |
| MSCI China All Shares Index | # of Stocks | Average 1-Day Change (%) |
|---|---|---|
| Hong Kong Listed | 165 | 2.71 |
| Communication Services | 11 | 2.89 |
| Consumer Discretionary | 28 | 3.29 |
| Consumer Staples | 13 | 1.38 |
| Energy | 6 | 0.93 |
| Financials | 25 | 2.33 |
| Health Care | 16 | 1.51 |
| Industrials | 22 | 1.24 |
| Information Technology | 12 | 3 |
| Materials | 14 | 4.55 |
| Real Estate | 7 | 2 |
| Utilities | 11 | 1.23 |
| Mainland China Listed | 386 | Closed |
| Communication Services | 8 | Closed |
| Consumer Discretionary | 26 | Closed |
| Consumer Staples | 19 | Closed |
| Energy | 12 | Closed |
| Financials | 64 | Closed |
| Health Care | 31 | Closed |
| Industrials | 58 | Closed |
| Information Technology | 95 | Closed |
| Materials | 52 | Closed |
| US & Hong Kong Dually Listed | Ticker | 1-Day Change (%) |
|---|---|---|
| Tencent HK | 700 HK Equity | 3.1 |
| Alibaba HK | 9988 HK Equity | 3.5 |
| JD.com HK | 9618 HK Equity | 3.6 |
| NetEase HK | 9999 HK Equity | 1.7 |
| Yum China HK | 9987 HK Equity | 0.9 |
| Baozun HK | 9991 HK Equity | 5 |
| Baidu HK | 9888 HK Equity | 3.3 |
| Autohome HK | 2518 HK Equity | 0.2 |
| Bilibili HK | 9626 HK Equity | 2.3 |
| Trip.com HK | 9961 HK Equity | 1.7 |
| EDU HK | 9901 HK Equity | 2.4 |
| Xpeng HK | 9868 HK Equity | 2.4 |
| Weibo HK | 9898 HK Equity | 4.1 |
| Li Auto HK | 2015 HK Equity | 3.9 |
| Nio Auto HK | 9866 HK Equity | 5.5 |
| Zhihu HK | 2390 HK Equity | 0.4 |
| KE HK | 2423 HK Equity | 1.9 |
| Tencent Music Entertainment HK | 1698 HK Equity | 3.5 |
| Meituan HK | 3690 HK Equity | 5.3 |
| Hong Kong's Most Heavily Traded by Value | 1-Day Change (%) |
|---|---|
| TENCENT HOLDINGS LTD | 3.1 |
| ALIBABA GROUP HOLDING LTD | 3.5 |
| MEITUAN-CLASS B | 5.3 |
| KNOWLEDGE ATLAS TECHNOLOGY-H | -22.8 |
| XIAOMI CORP-CLASS B | 3.4 |
| TRIP.COM GROUP LTD | 1.7 |
| BYD CO LTD-H | 4.9 |
| MINIMAX GROUP INC | -13.4 |
| AIA GROUP LTD | 4.1 |
| ZIJIN MINING GROUP CO LTD-H | 5.3 |
Last Night's Exchange Rates, Prices, & Yields
Mainland China's currency, commodity, and fixed income markets were closed overnight.
