Asian Markets Mixed, China Falls before Trump’s News Conference
10:30 AM EST – US crude oil inventories
10:30 AM EST – US Cushing crude oil inventories
11:00 AM EST – US President-elect Trump speaks
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After pulling back on January 9, China’s Shanghai Composite Index fell on January 11. The fall in the Shanghai Composite Index was led by transport and consumer stocks. Donald Trump commented that he would name China as a currency manipulator on his first day in the White House. His comment dented the sentiment in the market. Trump also threatened to impose tariffs on US imports from China. These comments weighed on the Chinese stock market as Trump’s inauguration is around the corner. His first news conference since the election is scheduled today. Increased supply also weighed on the market. The fast approval of IPOs along with a rise in additional shares issued by already listed companies increased the supply in the market.
On Wednesday, the Shanghai Composite Index closed the day at 3,137.63—a fall of 0.76%. The SPDR S&P China (GXC) closed at 75.70—a rise of 1.3% on January 10.
After gaining for four consecutive trading days, Hong Kong’s Hang Seng Index rose to the highest levels since November 11 on Wednesday. On January 11, the Hang Seng Index rose 0.84% and closed the day at 22,935.35. Expectations of economic stimulus policies by Trump supported the rally in the market. The iShares MSCI Hong Kong (EWH) rose 1.9% to $20.69 on January 10.
After falling for three consecutive trading days, Japan’s Nikkei closed higher on Wednesday. It ended January 11 at 19.364.67—a gain of 0.33% (63.23 points). The transport, transportation equipment, and pharmaceutical industry led the index higher. The fall in the yen also boosted exports and supported the index. The iShares MSCI Japan (EWJ) closed at 50.32—a fall of 0.38% on January 10.