Asian equities experienced a mixed performance overnight, with the Philippines standing out as a top performer. Despite geopolitical challenges, Hong Kong saw gains in its stock market, led by growth stocks. The Hang Seng and Hang Seng Tech Index both closed higher, with Tencent and Alibaba being among the most traded stocks. Tomorrow, key earnings releases to watch out for include Alibaba for fiscal Q4 2024 and Tencent for Q1 2024. Expectations and updates on share buybacks will be closely monitored for both companies.
Internet stocks had a positive day in Hong Kong, with Tencent Music Entertainment and Huya beating expectations on revenue, adjusted net income, and adjusted EPS. Southbound Stock Connect saw significant buying activity, led by Mainland investors. Despite US-China tensions, the market remained resilient, with news of a 100% tariff on China EV imports having little impact. Wuxi Biologics fell, while Wuxi AppTec gained. Mainland China also saw mixed performance, with CATL declining on the news from Biden, while LONGi Green Energy posted gains.
Economic data from Mainland China showed a slight increase in the consumer price index and a decrease in the producer price index. New loans and aggregate financing missed expectations, highlighting the need for policy support to boost demand. The Hang Seng and Hang Seng Tech indexes closed higher, with positive performance in growth and small-cap stocks. Southbound Stock Connect volumes were high, reflecting Mainland investors’ interest in Hong Kong-listed stocks and ETFs. In Shanghai, Shenzhen, and the STAR Board, sectors like Utilities and Industrials gained, while Consumer Staples and Real Estate saw declines.
In light of recent market movements, CNY and the Asia Dollar Index weakened against the US dollar. Treasury bonds rallied, and copper prices rose, while steel prices fell. The upcoming webinar on AI as a catalyst for emerging markets will be held on May 14th. An article discussing China’s stock market rally will also provide insights into the market’s recent performance. Key factors to watch in the coming days include earnings releases from major companies like Alibaba and Tencent, as well as market reactions to geopolitical developments and economic data.
