Asian Markets Gain Strength amid Upbeat US Jobs Data

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Asian Markets Gain Strength amid Upbeat US Jobs Data

China

After gaining for three consecutive trading weeks, China’s Shanghai Composite Index started this week on a mixed note. It opened lower on Monday and ended the day almost flat.

The market sentiment is mixed amid concerns about economic growth in 2H17. Weakness was observed in small caps on Monday amid approval of more IPOs by China’s securities regulator over the weekend. The risk appetite in Chinese markets was low on Monday. The market is looking forward to the string of important data that will be released next week. The data can provide the outlook for China’s economy. GDP data, fixed asset investment, and industrial production will be released on July 16.

On July 10, the Shanghai Composite Index fell 0.17% and ended the day at 3,212.63. The SPDR S&P China ETF (GXC) rose 0.25% to $89.06 on July 7.

Hong Kong

Hong Kong’s Hang Seng Index fell last week and ended the week at six-week low price levels. It opened the day lower on July 10 and rose as the day progressed. Improved global sentiment at the end of last week after upbeat US jobs data supported Hong Kong’s markets. HSBC Holdings and Tencent rose on Monday and boosted the Hang Seng Index. The Hang Seng Index rose 0.63% and closed the day at 25,500.06. The iShares MSCI Hong Kong ETF (EWH) rose 0.43% to $23.15 on July 7.

Japan

After falling for two consecutive trading weeks and ending last week at the lowest levels in three weeks, Japan’s Nikkei Index opened higher on Monday. Weakness in the yen along with stronger-than-expected US jobs data boosted the Nikkei Index. Strength in the insurance, rubber, and shipbuilding sectors also supported Nikkei. It closed the day at 20,080.98—a rise of 0.76%.

In the next part, we’ll discuss how European markets performed in the morning session on July 10.