Asian Markets Were Mixed in the Week Ending July 28

After gaining for five consecutive trading weeks, China’s Shanghai Composite Index started the week ending July 28 on a stronger note. Despite opening the week at three-month high price levels, the Shanghai Composite Index consolidated at elevated levels amid mixed market sentiment. The Shanghai Composite Index gained in four out of five trading days last week.

The market sentiment was mixed last week amid profit-booking, regulatory concerns, and optimism about China’s economic stability in 2H17. China’s market lost momentum as the week progressed due to profit-booking in blue-chip stocks. Stronger-than-expected economic data released in mid-July increased the demand for blue-chip stocks and pushed the China Blue-Chip Index to fresh 1.5-year high levels at the beginning of last week. However, it pulled back amid profit-booking last week. The government’s plans to stop systematic financial risks are keeping the regulatory concerns active. The market is looking forward to the release of manufacturing and services purchasing managers’ index that are scheduled to release on July 31 and August 2, respectively.

In the week ending July 28, the Shanghai Composite Index rose 0.61% and ended the week at 3,273.03. The SPDR S&P China ETF (GXC) rose 1.5% and ended last week at $96.37.

After gaining for two consecutive trading weeks, Hong Kong’s Hang Seng Index started last week on a stronger note at two-year high price levels. The Hang Seng Index carried the strength throughout the week and rose in the first four trading days of the week. It pulled back on Friday amid profit-booking but ended the week with gains. The Hang Seng Index rose 1.0% and closed last week at 26,979.39. The iShares MSCI Hong Kong ETF (EWH) rose 0.92% to $24.17 in the week ending July 28.

Japan’s Nikkei Index started last week with mixed sentiment. Despite stronger-than-expected household spending and Tokyo core CPI data, the Nikkei closed the week with a loss. The decreased risk appetite and stronger yen in the second part of the week weighed on Japan’s market. Nikkei fell 0.7% to 1,9959.84 in the week ending July 28.

In the next part, we’ll discuss how European markets performed last week.