Asian Markets Are Weak on August 29 amid Geopolitical Tension
On August 29, 2017, the Shanghai Composite Index rose 0.08% and ended at 3,365.23. The SPDR S&P China ETF (GXC) fell 0.71% and closed at 99.48.
Aug. 29 2017, Published 9:19 a.m. ET
Economic calendar
10:00 AM EST – U.S. CB Consumer Confidence (August)
7:50 PM EST – Japan’s retail sales (July)
China
After gaining for two consecutive trading weeks and closing above the important resistance level of 3,300, China’s Shanghai Composite Index started this week on a stronger note. The rally in the financial sector and the industrial sector’s upbeat earnings pushed the market to fresh 20-month high price levels on Monday.
Following two strong days, profit-taking was observed in Chinese markets on August 29 amid the dented global sentiment. North Korea’s missile launch over Japan dented the global sentiment on Tuesday and weighed on all of the major global exchanges. However, there wasn’t any major selling in Chinese markets—except weakness in the real estate sector. China is being supported by strong domestic sentiment amid steps being taken by the government to allow more public and private investments to restore state-owned enterprises.
On August 29, 2017, the Shanghai Composite Index rose 0.08% and ended at 3,365.23. The SPDR S&P China ETF (GXC) fell 0.71% and closed at 99.48. The market is waiting for the release of manufacturing and non-manufacturing PMI data that are scheduled to release on Wednesday.
Hong Kong
After a strong performance last week amid the improved global sentiment, Hong Kong’s Hang Seng Index started this week on the stable note due to upbeat earnings reports. However, the index opened lower on Tuesday and fell due to concerns about North Korea’s aggression. It launched a missile over Japan, which decreased the momentum on Wall Street. On August 29, the Hang Seng Index fell 0.35% and closed the day at 27,765.01. On August 28, the iShares MSCI Hong Kong Index (EWH) fell 0.16% and closed at 24.42.
Japan
After falling for one and half months, Japan’s Nikkei Index started this week on a mixed note amid the stronger yen. It opened lower on Tuesday and closed with a loss due to weak global sentiment and North Korea launching a missile over Japan. The market is looking forward to the release of retail sales data at 7:50 PM EST today. The Nikkei Index closed the day at 19,362.55—a fall of 0.45%. The iShares MSCI Japan Index (EWJ) rose 0.11% to 54.42 on August 28.
In the next part of this series, we’ll see how European markets performed in the morning session on August 29, 2017.
