Asian equities saw mixed results overnight ahead of the release of US inflation data, with Hong Kong stocks outperforming. Fitch downgraded China’s credit conditions outlook from stable to negative, but Hong Kong-listed stocks still managed to gain around +2%. NIO continued to rise, gaining almost +5% on fresh data showing a significant increase in new energy vehicle sales in March. China is set to report inflation and credit data, with low expectations for the consumer price index despite rising pork prices.
Meanwhile, reports suggest that Chinese President Xi Jinping is meeting with former Taiwan President Ma Ying-Jeou in Beijing. Ma, a member of the Kuomintang party, is known for taking a relatively dovish stance on relations with Beijing. Alibaba shares rose on rumors that founder Jack Ma praised the company’s management strategy in a memo to staff. JD also gained on the announcement of subsidies for video content creators.
In Hong Kong, the Hang Seng and Hang Seng Tech indexes both gained by more than 1% on increased trading volume. Mainland investors sold a net -$911 million worth of Hong Kong-listed stocks and ETFs. The top-performing sectors were Consumer Discretionary, Utilities, and Materials, while Information Technology, Health Care, and Real Estate lagged behind. On the mainland, Shanghai, Shenzhen, and the STAR Board closed lower, with foreign investors selling a net -$525 million worth of Mainland-listed stocks.
Looking ahead, a webinar will be held on China’s Q1 performance, consumer rebound, and investment strategies on April 18th, followed by another webinar on April 24th focusing on market normalization. Additionally, a new article explores Nvidia’s rise fueled by chip giants TSMC and SK Hynix. Overnight exchange rates, prices, and yields showed minor fluctuations, with the CNY per USD at 7.23 and the yield on 10-Year Government Bond at 2.30%. Copper and steel prices also saw slight increases. Financial markets continue to monitor developments in China and the Asia-Pacific region for potential investment opportunities.
