Hang Seng recovers
Hong Kong’s Hang Seng Index, which fell 1.5% on May 14, ended up gaining 0.52% on May 15 to end up at 28,268.71. The index followed the SSE Composite Index’s lead.
After losing 2.92% on May 13, the iShares MSCI Hong Kong ETF (EWH) recovered yesterday. The ETF gained 1.24% yesterday, outperforming the Hang Seng Index as well as the US indexes. We expect the ETF to post moderate gains today in the absence of any negative news.
Japan’s Nikkei 225 almost nullified its 0.59% loss on May 14 with a 0.58% gain on May 15. The index opened higher but dropped during early trading. The market then turned around with the expectation that China would roll out a stimulus to turbocharge its slowing economy. The index closed at 21,188.56.
The broader Tokyo Stock Price Index gained 0.6% on May 15 to end the day at 1,544.15.
On May 14, the iShares MSCI Japan ETF (EWJ), which invests in Nikkei 225 companies, gained 1.4% against the Nikkei’s 0.59% loss. The ETF also outperformed the US indexes. The WisdomTree Japan Hedged Equity ETF (DXJ) gained 1.67%. The Vanguard FTSE Pacific Index ETF (VPL) rose 1.09% yesterday.
The JPMorgan BetaBuilders Japan ETF (BBJP), which invests in 382 companies that are part of the Nikkei 225 and the Tokyo Stock Price Index, gained 1.51% on May 14.
Most of these ETFs performed as we’d expected. With the Japanese market in positive territory, these ETFs may give marginally positive returns today.