Following a weak performance for five weeks, China’s Shanghai Composite Index started this week on a weaker note by declining on Monday. Carrying forward the weakness, the Shanghai Composite Index opened lower on June 26 and ended the day at fresh two-year low price levels.
The Shanghai Composite Index declined to two-year low price levels on Monday amid escalating US-China trade war concerns. The concerns deepened on Tuesday amid reports that the U.S. Department of the Treasury plans to restrict companies with 25% or more Chinese ownership from buying US technology companies. US Secretary of the Treasury Steven Mnuchin tweeted on Monday that the restriction is aimed at China. However, the restriction could be applied to all of the nations that are trying to steal technology from the US.
On June 26, the Shanghai Composite Index fell 0.51% and closed the day at 2,844.66. The SPDR S&P China (GXC) fell 2.8% on Monday.
Following a weak performance for two weeks, Hong Kong’s Hang Seng Index started this week on a weaker note by closing at six-month low price levels on Monday. Carrying forward the weakness, the Hang Seng Index started Tuesday on a weaker note and fell lower. However, the Hang Seng Index recovered most of the daily losses amid bargain hunting at multi-month low levels.
On June 26, the Hang Seng Index fell 0.3% and closed the day at 28,874.00. The Shares MSCI Hong Kong (EWH) fell 1.3% on Monday.
After a brief pullback last week, Japan’s Nikkei Index closed lower on Monday and started this week on a mixed note. Amid escalating trade war concerns, the Nikkei Index opened lower on June 26 and regained strength as the day progressed. Despite the stronger yen and weak sentiment, the Nikkei Index bounced off from intraday lows amid a recovery in the bank and utilities sectors.
The Nikkei Index gained 0.1% and closed the day at 22,361.50 on Tuesday. The iShares MSCI Japan (EWJ) fell 1.4% on Monday.
Next, we’ll discuss how US markets performed on June 25.