After rising marginally yesterday, Hong Kong’s Hang Seng Index fell today. The index lost 1.15% to end at 28,185.98. Only seven stocks in the index advanced, while 39 declined. Four remained unchanged. Tencent Holdings (TCEHY) was one of the worst performers with a 1.8% fall. The ADRs of the Chinese tech giant may continue to be under pressure today when the US market opens. Yesterday, the ADRs lost 0.62%. AIA Group (AAGIY), whose ADRs are listed in the US, lost 0.54% today. Expect the ADRs to remain under pressure today. Tencent and AIA Group are both part of the iShares MSCI Hong Kong ETF (EWH).
On the economic front, Hong Kong saw both imports and exports fall in May. Exports fell 2.4%, while imports saw a 4.3% drop as the trade war intensified in the month. Being a gateway to China, a lot of trade between China is routed through Hong Kong. Thus, Hong Kong has been under pressure from the ongoing US-China trade war.
Meanwhile, Japan’s Nikkei 225 saw a 0.43% loss. Most sectors saw a decline as trade worries continued to mount. 82 stocks in the index gained, while 132 declined as most sectors ended in the red. Sony (SNE) was among the top losers, losing 2.1%. Sony ADRs, which saw a marginal loss yesterday, may see further pressure when the US markets open.