8:30 AM EST – US goods trade balance (April)
8:30 AM EST – US initial jobless claims
10:00 AM EST – FOMC member Brainard speaks
7:30 PM EST – Japan’s National Core CPI (consumer price index) (April)
7:30 PM EST – Japan’s Tokyo Core CPI (May)
10:00 PM EST – FOMC member Bullard speaks
After regaining some strength on Wednesday, China’s Shanghai Composite Index continued to strengthen and rose on May 25. The sentiment was weaker in the morning session on Wednesday. Moody’s downgraded China’s credit rating. The downgrade didn’t impact the market on May 24 or May 25. Asian markets were supported by the rally in Wall Street. Read S&P 500 Rose for the Fifth Day, Reached Record Highs to learn about Wall Street’s rally on Wednesday.
China’s CSI 300 Index rose 1.8% on Thursday and recorded the best one-day gain in 21 months. The blue-chip index rose amid increased expectations of an inclusion of China’s market shares in the MSCI benchmark in June. On May 25, the Shanghai Composite Index rose 1.4% and ended the day at 3,107.87. The SPDR S&P China ETF (GXC) rose 0.15% to $87.14 on May 24.
After starting the week on a positive note, Hong Kong’s Hang Seng Index rose for the fifth consecutive day and closed May 25 at the highest levels since July 2015. After Moody’s cut China’s credit rating, it also cut Hong Kong’s debt rating. According to Moody’s, Hong Kong’s debt rating was cut due to tightening economic integration, especially with China. On May 25, the Hang Seng Index rose 0.8% and closed the day at 25,631.5. The iShares MSCI Hong Kong ETF (EWH) rose 0.47% to $23.42 on May 24.
Like other major Asian markets, Japan’s markets are stable on Thursday. On May 25, Japan’s Nikkei Index was supported by the softer yen. The rise in SoftBank shares to two-week highs also helped Nikkei post stable gains. Nikkei closed the day at 19,805.00 with a gain of 0.31%. The iShares MSCI Japan ETF (EWJ) closed at $53.01—a fall of 0.15% on May 24. In the next part, we’ll discuss how European markets are performing in the morning session on May 25.