Hang Seng and Japanese Indexes Rose despite Faltering Trade

Hang Seng rose

Hong Kong’s Hang Seng Index, which has been under severe pressure this quarter, was the best performing Asian index on June 19 with 2.56% gains. The index recorded its third consecutive gain following the gains in US indexes on June 18. The Hang Seng Index was impacted by protests against the extradition bill last week. AIA Group (AAGIY), which is the Hang Seng Index’s largest component, gained 4.3%, while Tencent Holdings (TCEHY) gained 3.95%. AIA Group and Tencent Holdings have their ADRs listed in the US. AIA Group is also the biggest component of the iShares MSCI Hong Kong ETF (EWH). On June 18, the iShares MSCI Hong Kong ETF (EWH) gained 2.72%.

Japanese indexes gained

Like most Asian indexes, Japan’s Nikkei had a good day on June 19. After falling 0.72% yesterday, the index gained 1.72%. Like most of the other Asian indexes, the Nikkei 225 opened higher on June 19 after the surge in the S&P 500 the previous day. The index rose marginally until the lunch break and maintained the lead in the second half of the day. The broader TOPIX index gained 1.74%. Sony (SNE) gained 2.01% on the Tokyo Stock Exchange. The stock is expected to open higher on the NYSE on June 19. Toyota (TM) gained 0.79% on the Tokyo Stock Exchange. Sony and Toyota are a part of the iShares MSCI Japan ETF (EWJ).

Japan’s trade data was disappointing amid the ongoing trade war. In May, Japan’s exports fell 7.8%—marginally higher than expected. However, the 1.5% fall in imports wasn’t expected.