Asian stocks had one day, with the exception of India, where the US dollar weakened overnight, while Japan returned to the good mood after yesterday’s holiday and outperformed.
It was a very quiet summer night for news, which was paired with light volumes as markets wait for US inflation data along with China’s July economic data. After the close of July M2, new loans and aggregate financing improved month over month, though all slightly missed economist expectations. Hong Kong has made a small move off support levels as the Q2 earning season enters prime time, with Tencent and Meituan reporting tomorrow morning.
Online real estate company KE Holdings (BEKE US, 2423 HK) gained 7. 67% in Hong Kong after strong effects and outperformed its US ADR, which gained 5. 49% yesterday. This morning, Tencent Music Entertainment (TME US, 1698HK) gained 4. 7% in Hong Kong as the company released its currency effects after the Hong Kong lockdown and outperformed the big three (cash receiving, adjusted net profit and adjusted EPS), for the year. The year-over-year decline in cash inflows appears to be weighing on pre-trading inventory. It was also reported this morning that online gaming streamer HUYA (HUYA US) beat the Big 3 with a special dividend of $1. 08 favorable to shareholders and an increase in its inventory buybacks.
Energy stocks rose on tensions in the Middle East, while generation stocks also had a day in both markets as talks about iPhone 16 production accelerated, dragging Apple suppliers higher.
Hong Kong’s top traded stocks via price were Tencent, +0. 96%, Meituan, -0. 58%, Alibaba, +0. 25%, China Construction Bank, -0 . 36%, and Xiaomi, with +2. 67%. Major Internet stocks also rose sharply: NetEase fell -1. 21%, JD. com +0. 7%, Trip. com +0. 3%, Kuaishou -0. 11% and Bilibili +1. 99 %. Mainland investors bought $246 million worth of Hong Kong stocks and ETFs, with Tencent and China Mobile being moderate net purchases. The mainland market recorded slight gains in volume, below the one-year average, as it was the lightest day since May 25, 2020, as the trading price fell below RMB 500 billion for the fourth time. Do this for the fifth time, because today’s volume was even lower than Array. Cleantech stocks had a smart day as recipients of political support. Another big news was the revision of the MSCI index, discussed below. For shipment delivery, ZTO will move its MSCI market from the United States to Hong Kong. Mainland media noted that American and Chinese diplomatic and monetary regulators were meeting in Shanghai, although media policy was limited in the West.
MSCI has published its format for month-end index rebalancing. New emerging market country weights/total number of securities/security additions/security deletions are shown below:
The Hang Seng and Hang Seng Tech gained +0. 38% and stable/0. 0% respectively, with a volume increase of +0. 73% compared to yesterday, or 69% of the one-year average. 217 stocks rose, while 230 fell. Main Board’s short turnover fell -11. 16% from yesterday, or 72% of the year-over-year average, as 18% of turnover was short turnover (the Hong Kong short volume includes ETF short volume, which we decide through market makers). ‘ ETF coverage ). Large-cap and price stocks outperformed small-cap and growth stocks. The leading sectors were technology, with +1. 5%, public services, with +1%, and industrial, with +0. 87%, while basic consumer products fell -0. 63 %, real estate fell -0. 16% and discretionary fell -0. 02%. %. The most sensitive subsectors were media, telecommunications facilities and technical equipment, while the worst were automobiles, food and professional facilities. Southbound Stock Connect volumes were light: Mainland investors bought $246 million of Hong Kong stocks and ETFs, with Tencent and China Mobile being moderate net buys, while Hong Kong ETF Tracker was a moderate/large net sell .
Shanghai, Shenzhen and STAR Board gained +0. 34%, +0. 5% and +0. 48% respectively, with volume down -3. 69% from yesterday, or 59% of the annual average. 2,799 shares rose, while 2,013 fell. Large-cap and price stocks outperformed small-cap and growth stocks. The leading sectors were industrial, with +1. 06%, technology, with +0. 87%, and financial, with +0. 83%, while basic customer products fell -0, 72%, fitness -0. 61% and discretionary customer -0. 07%. The most sensitive subsectors were force generation devices, force devices and force network, while alcohol, prescription drugs and biotechnology were the worst. Northbound Stock Connect volumes were moderate as foreign investors were small net sellers, while Wuliangye, Wanhua and Eoptolink were small net sellers. Treasury bonds have rallied. The CNY and the Asian dollar index gained against the US dollar. Copper gained while the metal fell.
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