China’s Shanghai Composite Index started this week on a weaker note and declined in the first three trading days of the week. Carrying forward the weakness, the Shanghai Composite Index opened lower on June 28 and declined to the lowest daily close since March 2016.
More concerns about trade relations between the US and China are weighing on the Shanghai Composite Index this week. The Shanghai Composite Index declined to 27-month low price levels on Thursday amid increased caution in the market. The market is also impacted by increased volatility. Concerns about corporate bond defaults and trade war tensions raised doubts about China’s economic stability and weighed on the market. The market was supported by strength in the energy sector, which was pushed higher by rising oil prices on Thursday.
On June 28, the Shanghai Composite Index fell 0.97% and closed the day at 2,785.98. The SPDR S&P China (GXC) fell 3.1% on Wednesday.
After declining for two weeks, Hong Kong’s Hang Seng Index started this week on a weaker note and declined in the first three trading days of the week. On June 28, the Hang Seng Index started the day on a weaker note amid ongoing trade war concerns. However, the Hang Seng Index reversed the direction and rose amid energy stocks’ strong performance.
On June 28, the Hang Seng Index gained 0.83% and closed the day at 28,591.00. The Shares MSCI Hong Kong (EWH) fell 1.7% on Wednesday.
After a brief pullback on Wednesday, Japan’s Nikkei Index opened lower on June 28 amid the release of weaker-than-expected economic data and ongoing trade war concerns. According to the Ministry of Economy, Trade, and Industry, Japan’s retail sales grew 0.6% in May—less than the forecast of 1.3% growth. However, the Nikkei Index regained strength amid the rally in oil and gas stocks on Thursday.
The Nikkei Index rose 0.05% and closed the day at 22,282.50 on June 28. The iShares MSCI Japan (EWJ) fell 0.67% on Wednesday.
Next, we’ll discuss how US markets performed on June 27.