Asian equities saw a mixed performance as concerns over the US CPI print weighed on regional investors. The Asia dollar index dipped, with India underperforming the region. Mainland China and Hong Kong markets took a breather from recent gains, closing flat as profit-taking in growth stocks and real estate sectors occurred.
Despite negative media coverage on TikTok, Mainland China and Hong Kong markets remained resilient. Mainland investors showed confidence by buying $1.459mm of Hong Kong ETFs and stocks via Southbound Stock Connect, focusing on Hong Kong Tracker ETF and Hang Seng Tech ETF.
In Hong Kong, growth stocks outperformed, with Tencent slightly down ahead of its financial results. Meituan gained, Alibaba fell, and Hong Kong Exchanges saw an increase. BYD and Li Ning experienced fluctuations after recent developments.
Mainland China witnessed small losses, with notable foreign investor interest in EV battery giant CATL. The State Council released an Action Plan emphasizing domestic demand expansion and supply-side structural reform, particularly in autos, home appliances, and home decorations.
The Hang Seng and Hang Seng Tech indexes fluctuated, with Materials, Health Care, and Utilities sectors performing well. Real Estate, Financials, and Consumer Staples sectors faced declines.
In Shanghai, Shenzhen, and the STAR Board, sectors like communication, utilities, and discretionary showed strength, while real estate, financials, and staples faced challenges. Northbound Stock Connect saw moderate volumes as foreign investors engaged in mainland stocks.
Overall, the Asian markets displayed a mix of positive and negative movements, with various sectors and stocks experiencing fluctuations in response to global and regional developments.
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