Asian equities displayed a positive trend overnight, with Japan leading the way due to salary increases and potential changes in its negative interest rate policy. Growth stocks and sectors in Mainland China and Hong Kong also performed well, boosted by attention on Nvidia's GTC conference in China. Recent policies supporting technological self-sufficiency, announced during the 'Two Sessions' policy meetings, may have contributed to this positive momentum.
Following the release of combined January and February data due to the Chinese New Year holiday, concerns arose from weak credit data. The decline in property investment and lower-than-expected rebound in retail sales highlighted the need for additional support in these sectors. Despite these challenges, China's economy continues to show signs of gradual recovery.
Mainland China experienced a robust trading day, driven by growth stocks and sectors that closed at high levels with strong breadth and volume. Notably, CATL, the world's largest battery maker, saw a significant increase in stock value following positive investor sentiment and revenue projections. Foreign investors showed interest in Hong Kong-listed stocks, with substantial net buying recorded.
In Hong Kong, despite a minor morning setback, growth stocks and sectors outperformed. Notable stock movements included gains in Tencent and Alibaba, while concerns over Li Auto's latest model impacted its stock value. Mainland investors demonstrated confidence by purchasing Hong Kong-listed stocks and ETFs.
The Hang Seng and Hang Seng Tech indexes in Hong Kong posted modest gains, with technology and consumer staples sectors leading the way. Meanwhile, Shanghai, Shenzhen, and the STAR Board in Mainland China also saw positive movements, with communication services and technology sectors performing well.
Overall, the Asian equities market showed resilience, with various sectors experiencing growth and positive investor sentiment. Despite challenges in specific industries, the market demonstrated stability and potential for further development.
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