Asian Markets Are Mixed, Japan Awaits Monetary Policy Statement



Economic calendar

8:30 AM EST – U.S. Export Price Index (June)

8:30 AM EST – U.S. Import Price Index (June)

9:30 AM EST – Bank of England Governor Carney speaks

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China’s Shanghai Composite Index started this week on a weaker note by falling to almost three-week low price levels on Monday. On July 18, the Shanghai Composite Index opened the day lower but regained some strength as the day progressed.

The strong sell-off in China’s markets on Monday, especially in small-cap stocks, decreased the market’s risk appetite. Despite strong economic data such as GDP data, industrial production, retail sales, and fixed-asset investment, China’s markets lost strength this week amid regulatory concerns. President Xi Jinping called for the central bank to strengthen regulations to defend China’s economy against financial risks.

On July 18, the Shanghai Composite Index rose 0.33% and ended the day at 3,186.93. The SPDR S&P China ETF (GXC) fell 0.72% to $93.6 on July 17.

Hong Kong

Hong Kong’s Hang Seng Index gained in all of the trading days last week and opened this week on a stronger note. The Hang Seng Index gained for seven consecutive trading days and traded at two-year high price levels on Tuesday. The rise in energy and technology sector stocks supported the Hang Seng Index. Losses in the financials sector limited the profits. The Hang Seng Index rose 0.21% and closed the day at 26,524.94. The iShares MSCI Hong Kong ETF (EWH) fell 0.5% to $23.76 on July 17.


Last week, Japan’s Nikkei Index broke its two-week losing streak amid improved market sentiment. Japan’s markets were closed on Monday due to Ocean Day. The markets opened lower on Tuesday and prices fell below the important level of 20,000. The stronger yen and decrease in risk appetite ahead of the Bank of Japan’s monetary policy statement weighed on the Nikkei Index today. The Bank of Japan’s monetary policy statement will be released on July 19. Nikkei fell 0.59% and closed the day at 19,999.91—the lowest close in more than a week.

In the next part, we’ll discuss how European markets performed in the morning session on July 18.


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