Asian Markets Lost Momentum on July 25
On July 25, the Shanghai Composite Index started the day on a stable note but ended the day with losses amid profit-booking.
After gaining for five consecutive trading weeks, China’s Shanghai Composite Index started this week on a stronger note by rising on Monday to more than a three-month high.
On Tuesday, the Shanghai Composite Index started the day on a stable note but ended the day with losses amid profit-booking. Stronger-than-expected economic data released in mid-July increased the demand for blue-chip stocks. The China Blue-Chip Index rose to fresh 1.5-year high levels. On Tuesday, blue-chip stocks pulled back amid profit-booking and weighed on the market. There are concerns about firm regulations. The government plans to stop systematic financial risks, which weighed on the market.
On July 25, the Shanghai Composite Index fell 0.21% and ended the day at 3,243.69. The SPDR S&P China ETF (GXC) rose 0.45% to $95.41 on July 24.
Hong Kong’s Hang Seng Index gained for two consecutive trading weeks and rose to two-year high price levels. With improved sentiment, the Hang Seng Index started this week with gains on Monday. On July 25, the Hang Seng Index started the day on a stable note but closed flat. The market was supported by the rise in tech stocks. However, weakness in industrial and energy stocks limited the upward movement.
The Hang Seng Index rose 0.02% and closed the day at 26,852.05. The iShares MSCI Hong Kong ETF (EWH) rose 0.46% to $24.06 on July 24.
After closing last week flat, Japan’s Nikkei Index started this week on a mixed note. Despite opening higher on July 25 and trading above 20,000, the market pulled back and closed the day below the opening price amid a lower market risk appetite. Weakness in pharma and insurance stocks weighed on the Nikkei Index. Nikkei fell 0.1% and closed the day at 19,955.20.
In the next part, we’ll discuss how European markets performed in the morning session on July 25.