After declining for two consecutive trading weeks, China’s Shanghai Composite Index started this week on a stronger note and gained in the first two trading days. The Shanghai Composite Index opened lower on June 6, recovered as the day progressed, and closed almost flat.
The market sentiment in Chinese markets has improved this week amid the release of May’s Caixin Services PMI that showed steady growth. On Wednesday, gains in material and transport stocks were offset by losses in real estate and banking stocks. China’s government worked to make public housing affordable, which led to capping the number of private homes in the southern boomtown of Shenzhen. The area is known for its expensive homes. The sentiment in real estate was also dented by increased scrutiny on homebuyers and their eligibility in Tianjin—a coastal metropolis in northern China. Stability in US markets on June 5 along with decreased concerns about geopolitical factors supported Chinese markets on Wednesday.
On June 6, the Shanghai Composite Index closed at 3,115.18—a gain of 0.03%. The SPDR S&P China (GXC) gained 0.2% on Tuesday.
After gaining for four consecutive trading days, Hong Kong’s Hang Seng Index opened higher on Wednesday and closed the day at two-week high price levels. Hong Kong’s markets were supported by the IT sector’s strong performance. Due to the rally in the US market’s technology stocks overnight, AAC Technologies Holdings rose 9.3%. AAC Technologies was the Hang Seng Index’s top gainer on Wednesday. The rise in ACC Technologies helped the index close higher.
On June 6, the Hang Seng Index gained 0.43% and closed the day at 31,227.00. The iShares MSCI Hong Kong (EWH) gained 0.48% on Tuesday.
After gaining for two days, Japan’s Nikkei Index opened lower on Wednesday, regained strength, and closed the day with gains. The improved global risk appetite is helping the Nikkei Index trade with stability above the important level of 22,600. On June 6, strength in the communication, shipbuilding, and retail sectors pushed the Nikkei Index higher. The Nikkei Index gained 0.38% and closed the day at 22,625.73. The iShares MSCI Japan (EWJ) fell 0.18% on Tuesday.
In the next part, we’ll discuss how US markets performed on June 5.