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Asian Markets Are Stable on May 9, Nikkei Pulls Back

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Dec. 4 2020, Updated 10:53 a.m. ET

Economic calendar

9:00 AM EST – FOMC member Kashkari speaks

10:00 AM EST – US JOLTs job openings (March)

1:00 PM EST – FOMC member Rosengren speaks

4:15 PM EST – FOMC member Kaplan speaks

9:30 PM EST – China’s consumer price index (April)

9:30 PM EST – China’s producer price index (PPI)

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China

After falling for five consecutive trading days, China’s Shanghai Composite Index closed flat on Tuesday. The Shanghai Composite Index opened lower on May 9, but regained strength as the day progressed.

Regulations weigh on the market

The sentiment in Chinese markets has been weak since mid-April due to increased regulations on money-market speculators and insurance providers. Despite strength on May 9, lingering concerns about regulations are weighing on Chinese markets. Increased regulations on properties to control prices also dented the sentiment. Major Chinese state banks increased interest rates on home mortgages to control property prices.

The market is looking forward to inflation data scheduled to release at 9:30 PM EST today. On May 9, the Shanghai Composite Index rose 0.06% and ended the day at 3,080.53. The SPDR S&P China ETF (GXC) fell 0.13% to $82.72 on May 8.

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Hong Kong

After starting the week on a stable note amid France’s presidential election, Hong Kong’s Hang Seng Index rose on May 9 and reached the highest levels since July 2015. China’s markets closing flat helped the sentiment in Hong Kong’s markets on May 9. Increased money flow from China along with support from resource shares helped the Hang Seng Index reach a 21-month high on Tuesday. The Hang Seng Index rose 1.3% on May 9 and closed the day at 24,889.03. The iShares MSCI Hong Kong ETF (EWH) fell 0.09% to $22.91.

Japan

After rising to 17-month high price levels and starting the week on a stronger note on Monday, Japan’s Nikkei index pulled back on Tuesday. Emmanuel Macron’s victory in France’s presidential election pushed the Nikkei index higher on May 8. Profit-booking and weakness in the power and steel sectors weighed on the market on May 9. Nikkei closed the day at 19,843 with a fall of 0.26%. The iShares MSCI Japan ETF (EWJ) closed at $52.79—a rise of 0.04% on May 8.

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