Asian equities were mostly lower overnight on light volumes as Korea and the Philippines outperformed. The privately calculated Caixin China Services PMI was released, beating estimates and showing a rebound in China’s consumer market. Geely Automotive saw gains in stock price after reporting a significant increase in sales of vehicles in the first quarter. There is optimism for US rate cuts which could also benefit China, as some believe China will follow suit. Some China-based chip companies are designing lower-end chip models to avoid US restrictions, allowing them to continue accessing TSMC for manufacturing.
Growth and value stocks saw slight gains in Hong Kong and Mainland China, respectively. Copper prices fell significantly overnight, impacting Materials names due to lower demand and stockpiles at the Shanghai Futures Exchange. The Hang Seng and Hang Seng Tech indexes closed with slight differences, with Mainland investors buying a net $562 million worth of Hong Kong-listed stocks and ETFs. The top-performing sectors were Health Care, Communication Services, and Consumer Staples, while Materials, Real Estate, and Energy fell.
Shanghai, Shenzhen, and the STAR Board all closed lower, with Utilities, Health Care, and Information Technology as the top-performing sectors, and Real Estate, Communication Services, and Materials as the worst-performing sectors. An upcoming webinar on June 11th, 2024 will discuss the US-China elections and its impact on relations. New content is available on high-yield bond opportunities in Asia’s market. Exchange rates, prices, and yields for CNY, USD, EUR, and government bonds saw slight fluctuations, with copper and steel prices falling.
Overall, Asian equities saw a mixed performance with China showing signs of recovery in its consumer market. Geely Automotive saw gains in stock price after reporting increased vehicle sales, while optimism for US rate cuts could also benefit China. Some China-based chip companies are designing lower-end chip models to avoid US restrictions. Copper prices fell significantly, impacting Materials names. The Hang Seng and Hang Seng Tech indexes closed with slight differences, while Shanghai, Shenzhen, and the STAR Board all closed lower. An upcoming webinar and new content offer insights on US-China relations and high-yield bond opportunities in Asia. Exchange rates, prices, and yields saw slight fluctuations overnight.
