Asian equities were mixed overnight on light volumes in advance of US inflation data tomorrow, with Indonesia, Malaysia, and the Philippines closed for holiday. Premier Li’s meeting with economic experts and entrepreneurs to discuss the current economic situation received significant attention. China is set to report March inflation data, with estimates at +0.4%. Dalian hog futures gained +6.45% in March, indicating a potential surprise in China’s CPI. Growth stocks outperformed in Hong Kong and Mainland China on light volumes, with NetEase gaining +4.1% on new game approvals.
The EV/battery/lithium sector had a strong day, as a government official stated that China’s electric vehicle production capacity is far from meeting demand. Baidu suffered a -3.29% drop on an analyst price target reduction. Southbound Stock Connect saw moderate net buying from Mainland China, while foreign investors sold -$145 million of Mainland stocks via Northbound Stock Connect. The Hang Seng and Hang Seng Tech gained +0.57% and +0.98%, respectively, with positive factors in play and growth stocks outperforming in China. The top sectors were tech, healthcare, and utilities, while energy witnessed a decline.
Shanghai, Shenzhen, and STAR Board also experienced gains, with the growth factor and small caps outperforming the value factor and large caps. The top sectors were healthcare, tech, and materials, while energy, utilities, and real estate were the worst performers. Northbound Stock Connect volumes were moderate, with foreign investors buying $145 million of Mainland stocks. CNY saw a small decline versus the US dollar, while Treasury bonds, copper, and steel rallied. Upcoming webinars include a discussion on China’s Q1 review and investment strategies, as well as a session on the normalization process.
Overall, the market was quiet on the news front, with a focus on the upcoming US inflation data. China’s inflation data is expected to be released soon, with a potential surprise in the CPI. Growth stocks outperformed in both Hong Kong and Mainland China, with sectors like EV/battery/lithium seeing strong gains. Southbound Stock Connect had a moderate day of net buying from Mainland China, while foreign investors sold Mainland stocks via Northbound Stock Connect. The Hang Seng and Hang Seng Tech gained on positive factors, while Shanghai, Shenzhen, and STAR Board also experienced gains. Northbound Stock Connect volumes were moderate, with foreign investors buying Mainland stocks. CNY saw a small decline versus the US dollar, while Treasury bonds, copper, and steel rallied.
