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Asian Markets Maintained Strength on July 27

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Updated

Economic calendar

8:30 AM EST – US core durable goods orders (June)

8:30 AM EST – US goods trade balance (June)

8:30 AM EST – US initial jobless claims

7:30 PM EST – Japan’s household spending (June)

7:30 PM EST – Japan’s jobs/applications ratio (June)

7:30 PM EST – Japan’s national core consumer price index (June)

7:30 PM EST – Japan’s retail sales (June)

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China

After rising for five consecutive trading weeks, China’s Shanghai Composite Index started this week on a stronger note. On Monday, it rose to more than a three-month high. Despite losing momentum on Tuesday amid profit-booking, especially in blue-chip stocks, the Shanghai Composite Index has been trading with strength at three-month high price levels this week.

On Thursday, the Shanghai Composite Index started the day lower and maintained the weakness in the initial trading hours. However, it regained strength as the day progressed. Despite an upbeat report on industrial profit, the market remained mixed. Losses in resource stocks weighed on the market. According to the report, China’s industrial firms’ earnings rose 19.1% year-over-year in June.

On July 27, the Shanghai Composite Index rose 0.06% and ended the day at 3,249.78. The SPDR S&P China ETF (GXC) rose 0.91% to $96.22 on July 26.

Hong Kong

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 by rising on Monday. Since the beginning of the week, the Hang Seng Index has risen for four consecutive trading days. A rally on Wall Street and upbeat second quarter earnings supported the index. Improved sentiment in the mainland also increased the expectation of higher fund flows into Hong Kong and supported the market. The Hang Seng Index rose 0.71% and closed the day at 27,131.17. The iShares MSCI Hong Kong ETF (EWH) rose 0.08% to $24.09 on July 26.

Japan

After closing flat last week, Japan’s Nikkei Index started this week on a mixed note. Amid improved market sentiment and volatility, Nikkei gained on July 26. On Thursday, it closed at the highest levels in a week. The market is looking forward to inflation, unemployment, retail sales, and household spending data scheduled to release at 7:30 PM EST today. On Thursday, the market was supported by the strength in mining, shipbuilding, and glass sectors. Nikkei rose 0.15% and closed the day at 20,079.64.

In the next part, we’ll discuss how European markets performed in the morning session on July 27.

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