Asian equities saw mixed performance with Hong Kong and Taiwan outperforming. Hong Kong investors were in a positive mood following the market’s four-day weekend and played catch up after Mainland China’s positive move and better-than-expected PMIs. Xiaomi saw a strong gain of +8.97% after entering the electric vehicles (EV) space, while competitors like Li Auto and XPeng had mixed performance. Brilliance China Auto gained significantly on strong financial results and a large dividend payout, causing shorts to cover. NetEase fell after two new games missed expectations.
Mainland investors bought a net $472 million worth of Hong Kong-listed stocks and ETFs, with Tencent, Meituan, Alibaba, and CNOOC being the most traded stocks. Alibaba announced a significant buyback of its shares, which impressed investors. Mainland China saw mixed performance, with foreign selling weighing on morning trading and defensive/value stocks outperforming growth stocks. Middle East tensions lifted energy stocks, while lithium plays benefited from March EV sales. Real estate development stocks performed poorly, with Vanke leading the decline.
The National Development and Reform Commission (NDRC) met with several companies, including JD Group, Midea, Haier, and Gree, to discuss equipment updates and consumer goods replacement. The currency markets saw CNY and the Asia Dollar Index weakening against the US dollar, with an increase in hog prices potentially leading to a CPI increase. The Hang Seng and Hang Seng Tech indexes gained, with strong volume and sector performance in energy and tech. Southbound Stock Connect volumes were high, with Mainland investors buying Hong Kong stocks and ETFs.
Shanghai, Shenzhen, and the STAR Board fell slightly, with the value factor and large caps performing better than the growth factor and small caps. The top sectors were energy, materials, and utilities, while real estate, tech, and healthcare sectors declined. Northbound Stock Connect volumes were light/moderate, with foreign investors selling Mainland stocks. The performance of various sectors and stocks, including CATL, Inovance, Wuliangye, Kweichow Moutai, Cits, and Sungrow Power, varied.
Overall, Asian equities had a mixed performance, with Hong Kong and Taiwan standing out. Companies like Xiaomi and Brilliance China Auto saw significant gains, while others like NetEase faced challenges. The currency markets saw fluctuations, with a potential CPI increase following a rise in hog prices. The Hang Seng and Hang Seng Tech indexes performed well, with strong volume and sector performance. Mainland China saw mixed performance, with foreign selling impacting the market. The outcome of the NDRC meeting and the buyback announcement from Alibaba were notable events in the markets.
