Asian Markets Are Mixed on December 7 amid Bargain Hunting
5:00 AM EST – Eurozone’s GDP
8:30 AM EST – US initial jobless claims
11:00 AM EST – European Central Bank President Draghi speaks
6:50 PM EST – Japan’s current account n.s.a. (October)
6:50 PM EST – Japan’s GDP
6:50 PM EST – Japan’s trade balance
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After a weak performance for three consecutive trading weeks, the Shanghai Composite Index carried the weakness to the current week. The Shanghai Composite Index fell in the first three trading days of the week and started lower on Thursday.
The market sentiment has been weak for the past three weeks due to increased concerns about economic growth. The market regained some stability at the beginning of this week due to strong services PMI (purchasing managers’ index) data. However, the market lost strength as the week progressed. Increased services activity boosted consumer sectors and supported blue-chip stocks. Profit-booking in blue-chip stocks at elevated levels led the market lower on Thursday.
On December 7, the Shanghai Composite Index fell 0.67% and closed the day at 3,272.05. The SPDR S&P China (GXC) fell 1.5% on December 6.
Following a weak performance last week, Hong Kong’s Hang Seng Index started this week on a stronger note. The market lost strength as the week progressed amid the dented market sentiment. The Hang Seng Index opened higher on Thursday amid selective bargain hunting for stocks at decreased levels. The rebound of index heavyweight Tencent Holdings also added strength to the market.
The Hang Seng Index rose 0.28% and closed the day at 28,303.19. The iShares MSCI Hong Kong (EWH) fell 0.87% on December 6.
Following a strong performance for two weeks, Japan’s Nikkei Index started this week on a weaker note and fell in the first three trading weeks. However, the market regained strength amid bargain hunting on December 7. Strength in the pharmaceuticals sector strengthened the market, while miners weighed on the market. On December 7, the Nikkei Index rose 1.5% and closed the day at 22,498.03. The iShares MSCI Japan (EWJ) fell 0.37% on December 6.
In the next part, we’ll discuss how European markets performed in the early hours on December 7.