Asian equities showed mixed but mostly higher performance, with Mainland China experiencing a decline while Indonesia and Thailand were on holiday. Janet Yellen’s visit to China gained attention, focusing on discussions about “excess capacity” in clean tech, particularly in electric vehicles and solar energy. Despite some negative headlines, Yellen’s meetings with top Chinese officials were reported to be productive. She recommended that China should shift its economy towards domestic consumption, a move that aligns with recent developments following the Two Sessions in China. The trip is expected to result in increased diplomatic efforts, with US Secretary of State Blinken rumored to visit China soon, signifying an improvement in US-China relations.
In Hong Kong, the market saw a small gain with some fluctuations throughout the session, though growth stocks underperformed. The most heavily traded stocks included Tencent and Alibaba, with mixed performance despite buying back shares. Mainland China underperformed despite strong travel data over the holiday weekend. Foreign investors sold a net amount of Mainland stocks, with notable sell-offs in liquor company Kweichow Moutai. Copper futures in China saw a strong session, gaining +2.24%. The Hang Seng and Hang Seng Tech indexes diverged in performance, with the former closing slightly higher while the latter saw a decline.
In Shanghai, Shenzhen, and the STAR Board, stock markets fell with declining volumes. The value factor and large caps performed better than the growth factor and small caps. Utilities were the only sector to see gains, while Consumer Staples, Health Care, and Real Estate sectors saw declines. Northbound Stock Connect volumes were high, with foreign investors selling a net amount of Mainland stocks. CNY weakened against the US dollar, while Treasury bonds rallied and copper prices rose. Southbound Stock Connect volumes for Hong Kong-listed stocks were moderate/high, with Mainland investors buying a net amount of shares.
A webinar on China’s Q1 review and investment strategies is scheduled for April 18th, followed by another webinar on the normalization process on April 24th. New content includes an article on Nvidia’s rise fueled by chip giants TSMC and SK Hynix. Exchange rates, prices, and yields showed some fluctuations, with CNY per USD at 7.23, government bond yields varying, and the copper price increasing by +2.24%. Overall, the Asian equities market displayed a mixed but mostly positive performance, with notable developments in US-China diplomatic relations and market movements in various sectors.
