The Chinese indexes closed on a high for the third consecutive day today. The Shanghai Composite Index rose 18 points, or 0.61% today. Yesterday, when the US markets were closed, this Asian Index surged 1.38%. The index’s performance this week so far wiped out the losses in the last week. Today, the index closed at its highest since May 17.
The Shenzhen Component, which is heavy on technology companies, also gained 0.62% today. Shenzhen Composite was a big gainer yesterday with 2.31% gains. After a dismal previous week, this week has been good for Chinese indexes so far. With US markets not yet open and no major news on the trade war front in the last couple of days, we will have to wait to see what happens to the indexes going forward.
The iShares MSCI China ETF (MCHI) fell 0.58% on May 24 and extended its loss of 1.87% on May 23. The iShares China Large-Cap ETF (FXI) fell 0.47% on May 24, extending its 1.23% fall on May 23. FXI rose 0.78% in pre-market trading at 5:30 AM EST on May 28. The technology-focused KraneShares CSI China Internet ETF (KWEB) fell 0.52% on May 24, while the Xtrackers Harvest CSI 300 China A-Shares ETF (ASHR) lost 0.39% on May 24. ASHR was up 1.98% in pre-market trading today at 5:32 AM EST.
Some of the China-focused ETFs are already up in pre-market trading. We expect the China-focused ETFs to do well today in the absence of any negative news.