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Asian Markets: China Fell amid Weak Fixed Asset Investment

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Updated

Economic calendar

8:30 AM EST – US core consumer price index (May)

8:30 AM EST – US core retail sales (May)

8:30 AM EST – US retail sales (May)

10:00 AM EST – US business inventories (Apr)

10:30 AM EST – US crude oil inventories

2:00 PM EST – US FOMC economic projections

2:00 PM EST – US FOMC statement

2:00 PM EST – US federal funds target rate

2:30 PM EST – US FOMC press conference

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China

China’s Shanghai Composite Index started the week on a weaker note amid the technology sector sell-off. The Shanghai Composite Index regained strength on Tuesday by shrugging off the technology sell-off. Despite Wall Street’s rally on June 13, the Shanghai Composite Index opened the day lower and traded with weakness. Volumes traded fell on Wednesday as the market looks forward to the Fed’s interest rate decision.

On June 13, weaker-than-expected fixed investment data dented the market sentiment. According to the National Bureau of Statistics of China, China’s fixed asset investment rose 8.6% in May, which is less than expected growth of 8.8%. It raised concerns about China’s economic stability in 2H17. The Shanghai Composite Index fell 0.73% and ended the day at 3,130.67. The SPDR S&P China ETF (GXC) rose 0.37% to $89.15 on June 13.

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Hong Kong

After starting the week on a weaker note, Hong Kong’s Hang Seng Index regained strength on June 13 and maintained stability on June 14. The Hang Seng Index started Wednesday on a weaker note amid weakness in Chinese markets but regained strength as the day progressed. Hong Kong’s markets are looking forward to the Fed’s interest rate decision. On June 14, the Hang Seng Index rose 0.09% and closed the day at 25,875.9. The iShares MSCI Hong Kong ETF (EWH) rose 0.84% to $24.1 on June 13.

Japan

Japan’s Nikkei Index started the day on a stronger note amid a rally on Wall Street. However, Nikkei lost momentum as the day progressed. The risk appetite fell before the Fed’s interest rate decision. Weakness in the communication and transport sectors weighed on Nikkei on June 14. It fell 0.08% and ended the day at 19,883.52. The iShares MSCI Japan ETF (EWJ) closed at $54.56—a gain of 0.55% on June 13.

In the next part, we’ll discuss how European markets performed in the morning session on June 14.

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