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Why Did Asian Markets Open Higher on June 29?

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Updated

Economic calendar

8:00 AM EST – Germany’s CPI (consumer price index) (June)

8:30 AM EST – US GDP

8:30 AM EST – US initial jobless claims

1:00 PM EST – US FOMC member Bullard speaks

7:30 PM EST – Japan’s household spending

7:30 PM EST – Japan’s national core CPI

7:50 PM EST – Japan’s industrial production

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China

After pulling back from more than two-month high price levels on Wednesday, China’s Shanghai Composite Index regained strength on June 29. The overnight surge in major Wall Street indices improved the sentiment in Chinese markets in the opening hours on Thursday. The rally in raw material stocks also supported the market. Raw material stocks rose due to the lower US dollar.

Recently, the sentiment has been weaker amid concerns about the economic outlook. Concerns about capital outflows, which could create a cash shortage for Chinese banks by the end of the second quarter, calmed as China’s yuan rose to more than a seven-month high. The market is looking forward to China’s manufacturing PMI data. The data are scheduled to release at 9:00 PM EST today.

On June 29, the Shanghai Composite Index rose 0.47% and ended the day at 3,188.06. The SPDR S&P China ETF (GXC) rose 0.73% to $90.24 on June 28.

Hong Kong

After falling for two consecutive trading days, Hong Kong’s Hang Seng Index regained strength and opened higher on Thursday. The rally in Wall Street on June 28 and President Xi Jinping’s visit for Hong Kong’s handover anniversary are the prime reasons behind the Hang Seng’s rally on June 29. The Hang Seng Index rose 1.1% and closed the day at 25,965.42. The iShares MSCI Hong Kong ETF (EWH) fell 0.04% to $23.56 on June 28.

Japan

Along with other major Asian markets, Japan’s Nikkei Index also opened higher on Thursday. The rebound in Wall Street markets supported Japan’s technology sector and pushed Nikkei close to the highest levels in two years. The market is looking forward to the string of Japanese economic data scheduled to release at 7:30 PM EST today. Nikkei closed the day at 20,220.30 after rising 0.45%. The iShares MSCI Japan ETF (EWJ) closed at $54.01—a rise of 0.45% on June 28.

In the next part, we’ll discuss how European markets performed in the morning session on June 29.

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