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Why Did Asian Markets Increase on January 23?

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Updated

Economic calendar

6:00 AM EST – U.K. CBI Industrial Trends Orders (January)

10:00 AM EST – US Richmond Manufacturing Index (January)

4:35 PM EST – US API weekly crude oil stock

6:30 PM EST – US Chicago Fed president Evans speaks

6:50 PM EST – Japan’s trade balance (December)

6:50 PM EST – Japan’s exports YoY (year-over-year) (December)

6:50 PM EST – Japan’s imports YoY (December)

7:30 PM EST – Japan manufacturing purchasing managers’ index (January)

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China

After gaining for five consecutive trading weeks, China’s Shanghai Composite Index started this week on a stronger note by rising to two-year high price levels. On Tuesday, the Shanghai Composite Index opened the day higher and rose to fresh two-year high price levels.

The market sentiment regained momentum after the release of China’s upbeat 4Q17 GDP last week. The upbeat economic release erased concerns about China’s economic outlook. On Tuesday, the market sentiment was boosted when the US government shutdown ended. Strength in the financial sector and property stocks pushed the index higher on Tuesday.

The Shanghai Composite Index rose 1.3% and closed the day at 3,546.50 on January 22. The SPDR S&P China (GXC) rose 0.71% on January 22.

Hong Kong

After gaining for six consecutive trading weeks and rising to record high price levels, Hong Kong’s Hang Seng Index started this week on a stable note. Amid the improved global risk appetite, the Hang Seng Index opened higher on Tuesday and rose to fresh record high price levels. Increased money inflow from the mainland along with strength in real estate, IT, and financials stocks pushed the Hang Seng Index higher.

On January 23, the Hang Seng Index rose 1.7% and closed the day at 32,930.70. The iShares MSCI Hong Kong (EWH) rose 0.87% on January 22.

Japan

After consolidating last week, Japan’s Nikkei Index started this week on a mixed note. However, the Nikkei Index regained strength on Tuesday and broke 24,000 for the first time in 26 years. The end of the US government shutdown and strength in Asian markets pushed the Nikkei Index higher. The market is looking forward to December’s trade balance and exports and imports data at 6:50 PM EST today.

On January 23, the Nikkei Index rose 1.3% and closed the day at 24,124.15. The iShares MSCI Japan (EWJ) gained 0.42% on January 22.

Next, we’ll discuss how European markets performed in the early hours on January 23.

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