Asian equities experienced mixed performance overnight, with gains seen in Japan, Taiwan, and India, while Hong Kong, Mainland China, and South Korea posted losses. President Xi Jinping had a busy day meeting with Dutch Prime Minister Mark Rutte and US CEOs, discussing topics such as semiconductor chips and Sino-US relations. Industrial profits in China saw an increase of 10.3% year-over-year in January/February, driven by a rise in manufacturing profits.
The US dollar appreciated overnight, leading to a weakening of Asian currencies except for the Japanese Yen and Philippine Peso. The Bank of Japan’s press conference contributed to a strengthening Yen and a late afternoon plunge in Mainland Chinese equities. Northbound Stock Connect witnessed a large net sell-off of -$1 billion, with stock-specific issues impacting Hong Kong equities. Alibaba, BYD, and Baidu were among the stocks that experienced declines due to various factors.
The Hang Seng and Hang Seng Tech indexes in Hong Kong fell, with short turnover and short selling on the Main Board increasing. Materials and healthcare sectors were among the few positive performers, while technology and consumer discretionary sectors saw declines. Southbound Stock Connect volumes were moderate as Mainland investors bought into Hong Kong-listed stocks and ETFs. Shanghai, Shenzhen, and the STAR Board in Mainland China also experienced declines, with all sectors in the red.
Foreign investors via Northbound Stock Connect sold Mainland stocks, leading to decreased performance in Shanghai, Shenzhen, and the STAR Board. CNY and the Asia dollar index weakened against the US dollar, while Treasury bonds rallied. Copper and steel prices saw declines. An upcoming webinar on plugging electric vehicle opportunities into portfolios is scheduled for today, and new content on defined outcome strategies in China’s internet sector is available. Exchange rates, prices, and yields fluctuated compared to the previous day’s performance.
