China’s Shanghai Composite Index started this week on a stronger note and gained in the first two trading days. However, the market lost strength as the week progressed amid the weak market sentiment. On July 27, the Shanghai Composite Index opened the day lower and maintained the mixed sentiment throughout the day.
The Shanghai Composite Index declined on Thursday amid increased concerns about the US-China trade war. US markets’ weak performance overnight weighed on the Shanghai Composite Index in the opening hours on Friday. Facebook’s (FB) historic plunge weakened the market sentiment and weighed on US markets on Thursday. On Friday, profit-booking at elevated levels and the focusing shifting to US-China trade relations limited the recovery in China’s market.
On July 27, the Shanghai Composite Index fell 0.3% and closed the day at 2,873.59. The SPDR S&P China (GXC) fell 2.03% on Thursday.
Hong Kong’s Hang Seng Index declined on Thursday and broke the four-day gaining streak. The Hang Seng Index opened lower on Friday amid the tech sell-off in US markets. However, the Hang Seng Index regained strength as the day progressed and consolidated for most of the day. Renewed concerns about the US-China trade war limited the Hang Seng Index’s upward movement.
On July 27, the Hang Seng Index fell 0.1% and closed the day at 28,752.00. The Shares MSCI Hong Kong (EWH) fell 1.04% on Thursday.
Japan’s Nikkei Index closed lower on Thursday amid the weak Asian market sentiment. However, the Nikkei Index opened higher on Friday and rose to one-week high price levels. The release of stronger-than-expected CPI (consumer price index) data supported the Nikkei Index on Friday. According to the Statistics Bureau, the Japan Tokyo core CPI increased 0.8% in July, which is better than the expected reading of 0.7%. The Nikkei Index gained 0.49% and closed the day at 22,697.00. The iShares MSCI Japan (EWJ) rose 0.25% on Thursday.
Next, we’ll discuss how US markets performed on July 26.