China’s Shanghai Composite Index gained for five consecutive trading weeks and closed last week at two-year high price levels. Carrying forward the strength, the Shanghai Composite Index started this week on a stronger note by surging to fresh two-year high levels on Monday.
Despite speculations about China’s economic outlook, the Shanghai Composite Index remained strong in the past month. China’s recently released upbeat 4Q17 GDP helped improve the market sentiment. On Monday, strength in the healthcare defensive and IT sectors pushed the market higher. Amid the improved sentiment, China’s blue-chip stock index rallied to 31-month high price levels.
The Shanghai Composite Index rose 0.39% and closed the day at 3,501.36 on January 22. The SPDR S&P China (GXC) rose 1.5% on January 19.
Hong Kong’s Hang Seng Index closed last week at record-high price levels and recorded the sixth consecutive weekly gain. Despite opening with a mixed sentiment on Monday, the Hang Seng Index surged to fresh record high levels. Asian markets didn’t trade with weakness despite concerns about the US government shutdown. The market is looking forward to the release of Hong Kong’s consumer price index data on Tuesday.
On January 22, the Hang Seng Index rose 0.25% and closed the day at 32,334.50. The iShares MSCI Hong Kong (EWH) rose 0.45% on January 19.
After closing last week almost flat, Japan’s Nikkei Index started this week on a mixed note. The Nikkei Index opened slightly lower on Monday and consolidated throughout the day. Strength in the financial sector and the improved Asian market sentiment were offset by weakness in resources stocks. The market is looking forward to the Bank of Japan’s monetary policy statement that’s tentatively scheduled to release today.
On January 22, the Nikkei Index rose 0.03% and closed the day at 23,816.33. The iShares MSCI Japan (EWJ) gained 0.63% on January 19.
In the next part, we’ll discuss how European markets performed in the early hours on January 22.