Asian equities were mostly higher overnight as calm was restored in global markets following a week of geopolitical jitters. Steel names were relatively unaffected after Biden’s tariff proposal, with analysts suggesting that the US remains a relatively small market for China’s steel producers. JD.com announced a $1.2 billion share repurchase in the first quarter, with a new program initiated until 2027 for nearly $3 billion in repurchases. Hong Kong rebounded after underperforming the Mainland in recent sessions, with financials and real estate leading the way, and home appliance makers rallying on expectations for higher demand.
The Hang Seng and Hang Seng Tech indexes closed higher in Hong Kong, with Mainland investors buying a net $848 million worth of Hong Kong-listed stocks and ETFs overnight. Shanghai, Shenzhen, and the STAR Board diverged to close slightly mixed, with foreign investors selling a net -$734 million worth of Mainland-listed stocks overnight. The top-performing sectors were Financials, Materials, and Consumer Discretionary, while the worst-performing sectors were Utilities, Energy, and Health Care. CNY held steady at 7.24 per USD, with Treasury bonds rallying slightly and copper gaining while steel fell.
Upcoming webinars include a China Q1 review and an investment strategies webinar. New content includes an article on Generative AI’s potential impact on China’s internet giants. Exchange rates, prices, and yields were relatively stable, with CNY per USD at 7.24, CNY per EUR at 7.72, and yields on government bonds showing slight fluctuations. Copper prices gained while steel prices fell slightly. Overall, markets in Asia are showing some stability after a period of volatility, with positive performance in sectors such as financials and real estate driving gains in major indices.
