Asian Markets Rose Early on July 20



Economic calendar

7:45 AM EST – Eurozone deposit facility rate

7:45 AM EST – Eurozone interest rate decision (July)

8:30 AM EST – U.S. Philadelphia Fed Manufacturing Index (July)

8:30 AM EST – European Central Bank’s press conference

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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. However, the market regained strength as the week progressed amid improved market sentiment.

Despite the release of stronger-than-expected GDP, industrial production, and retail sales data, the Shanghai Composite Index started this week lower due to concerns about firm regulations. On Thursday, the market started the day with strong upward sentiment amid upbeat second quarter corporate earnings. The market sentiment was also supported by the rally in blue-chip stocks, which rose to fresh 18-month high price levels.

On July 20, the Shanghai Composite Index rose 0.43% and ended the day at 3,244.86. The SPDR S&P China ETF (GXC) rose 1.4% to $95.44 on July 19.

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. After trading with subdued momentum for two days, the Hang Seng Index regained strength on Wednesday and rose to two-year high price levels. On July 20, the Hang Seng Index started the day higher and closed at fresh two-year high levels. Increased fund flows from China and the rally in stocks helped the Hang Seng Index rise for the ninth consecutive trading day. The Hang Seng Index rose 0.26% and closed the day at 26,740.21. The iShares MSCI Hong Kong ETF (EWH) rose 0.21% to $23.84 on July 19.


After regaining strength on Wednesday and closing above 20,000, Japan’s Nikkei Index opened the day higher. An improved risk appetite around the globe amid stronger-than-expected second quarter earnings supported the Nikkei. As a result, the index closed higher. The drop in the yen also pushed Nikkei higher. The Bank of Japan cut the inflation forecast and weakened the yen. Nikkei rose 0.62% and closed the day at 20,144.59.

In the next part, we’ll discuss how European markets performed in the morning session on July 20.


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