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Asian Markets Supported by Wall Street’s Rally

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Economic calendar

8:30 AM EST – US Producer Price Index (June)

8:30 AM EST – US Initial Jobless Claims

8:30 AM EST – US Fed Chair Yellen testifies

1:00 PM EST – FOMC member Brainard speaks

2:00 PM EST – US Federal Budget Balance

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China

After falling for three consecutive trading days, China’s Shanghai Composite Index rose on July 13. Improved global sentiment after Wall Street’s overnight rally along with China’s stronger-than-expected economic data supported the market on July 13.

According to data released by the General Administration of Customs China, China’s exports have risen 11.3% YoY (year-over-year), while imports have risen 17.2% YoY in June. The reports boosted the market, especially blue-chip stocks. China’s Blue-Chip Index rose to 18-month high price levels on Thursday amid China’s upbeat exports report.

On July 13, the Shanghai Composite Index rose 0.64% and ended the day at 3,218.16. The SPDR S&P China ETF (GXC) rose 1.9% to $92.76 on July 12.

Hong Kong

After rising for three consecutive trading days, Hong Kong’s Hang Seng Index opened higher on July 13 and rose to two-year high price levels. Improved market sentiment on Wall Street boosted the Hang Seng Index. Comments by Fed Chair Janet Yellen on Wednesday, which signaled a gradual increase in interest rate hikes, improved the sentiment in US markets. The Hang Seng Index rose 1.2% and closed the day at 26,346.17. The iShares MSCI Hong Kong ETF (EWH) rose 0.85% to $23.67 on July 12.

Japan

After pulling back on Wednesday, Japan’s Nikkei Index traded with mixed sentiment on July 13. Despite opening the day higher amid improved global sentiment, the Nikkei Index traded with weakness. Weakness in the financial sector weighed on the market and offset the rally in tech stocks. The decline of US bonds after Yellen’s testimony dented the sentiment in Japan’s banks. Nikkei closed the day at 20,099.81—a rise of 0.01%.

In the next part, we’ll discuss how European markets performed in the morning session on July 13.

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