China’s Shanghai Composite Index regained strength and rose 1.7% last week. The Shanghai Composite Index started this week with decreased momentum by opening lower on June 12. It lost strength as the day progressed and ended the day with losses.
The technology sector’s fall in Chinese markets along with concerns about economic stability weighed on the Shanghai Composite Index. The fall in information technology stocks on Wall Street at the end of last week weighed on the technology sector in Asian markets on Monday. Concerns about economic stability in 2H17 amid credit tightening in China also dented the sentiment on June 12. The Shanghai Composite Index fell 0.59% and ended the day at 3,139.88. The SPDR S&P China ETF (GXC) fell 1.5% to $89.54 on June 9.
Hong Kong’s Hang Seng Index rose to record high price levels last week and ended the week with profits. The Hang Seng Index rose for five consecutive trading weeks. It started this week on a weaker note by opening lower on Monday and falling to the lowest levels in ten days. At the end of last week, the sell-off in the technology sector on Wall Street dented the sentiment in Hong Kong’s market and weighed on the Hang Seng Index. The sell-off in the technology sector also triggered profit-booking on Monday. On June 12, the Hang Seng Index fell 1.2% and closed the day at 25, 708.04. The iShares MSCI Hong Kong ETF (EWH) fell 0.21% to $24.13 on June 9.
After losing momentum last week, Japan’s Nikkei index maintained weaker momentum this week. It opened lower on Monday and ended the day with a loss amid weaker sentiment in Asian markets. Weakness in the technology and chemical, petroleum, and plastic sectors weighed on the Nikkei index. Nikkei opened the week below the important level of 20,000. It fell 0.52% and closed the day at 19,908.58. The iShares MSCI Japan ETF (EWJ) closed at $54.09—a fall of 0.9% on June 6. In the next part, we’ll discuss how European markets performed in the morning session on June 12.