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Asian Markets Rebound on June 29

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China

Amid weak market sentiment, China’s Shanghai Composite Index started this week on a weaker note and declined in the first four trading days. However, the Shanghai Composite Index rose on Friday and recovered the losses incurred in the past three trading days.

Market sentiment

The market sentiment on the Shanghai Composite Index is weak this week amid escalating trade war concerns. Increased concerns about market liquidity, corporate bond defaults, and the economic outlook weighed on China’s markets this week. The sentiment improved on Friday. China decided to ease the restrictions on foreign investments. According to China’s National Development and Reform Commission, the country will ease foreign investment restrictions on the banking, automobiles, heavy industry, and agriculture sectors. However, trade tensions are still weighing on the market. Trade tensions limited the gains on Friday.

The market is looking forward to the release of China’s manufacturing PMI data for June. The data are scheduled to be released at 9:00 PM EST today. On June 29, the Shanghai Composite Index gained 2.2% and closed the day at 2,848.31. The SPDR S&P China (GXC) rose 0.92% on Thursday.

Hong Kong

Hong Kong’s Hang Seng Index closed higher on Thursday and broke the three-day losing streak. The rally in energy stocks supported the Hang Seng Index. Carrying forward the strength, the index opened stronger on Friday and moved higher as the day progressed. The strong rebound in China’s markets supported the Hang Seng Index on Friday. On June 29, the Hang Seng Index gained 1.6% and closed the day at 28,939.00. The Shares MSCI Hong Kong (EWH) rose 1% on Thursday.

Japan

After closing almost flat on Thursday, Japan’s Nikkei Index opened higher on Friday. The release of stronger-than-expected industrial production and inflation data in after-market hours on Thursday boosted the market sentiment. The rebound in Asian markets on Friday also supported the Nikkei Index. The Nikkei Index rose 0.1% and closed the day at 22,293.00 on June 29. The iShares MSCI Japan (EWJ) rose 0.12% on Thursday.

Next, we’ll discuss how US markets performed on June 28.

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