Heres why Shanghai index, Hang Seng rose after weak China data

Hong Kong-listed shares of Chinese banks were among the leading decliners in the Hang Seng index after Goldman Sachs reportedly downgraded its ratings for the top mainland lenders. U.S. Treasury Secretary Janet Yellen kicks off her visit to Beijing this week, where she is expected to meet with senior officials in China. This comes after China on Wednesday unexpectedly canceled EU High Representative for Foreign Affairs Josep Borrell’s visit to China. Hong Kong’s Hang Seng index led losses in the region, dipping 3% in its final hour of trade.

Odds that rates will stand a half point higher, at 5.50%-5.75%, by the end of the September meeting are now 17.7%, little changed from 16.4% a week ago. As of mid-afternoon Wednesday, the probability the Fed will go in July climbed to 88.7%, up from 81.8% a week ago,  according to interest rate traders. The odds that rates will be left unchanged fell to 11.3% from 18.2% last week. The current rate marks the highest the benchmark rate has been since November 2019.

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In mainland China, the Shanghai Composite was down 0.54% to close at 3,205.57 and the Shenzhen Component lost 0.55% to 10,968.37. Dubbing them “greenablers,” Goldman says they are less appreciated by ESG investors but could be “in the framework of investors potentially looking beyond Solar/Wind/Water stocks.” China’s gross domestic product grew 3.9% in the third quarter from a year ago, data from the National Bureau of Statistics showed. Chinese tech companies dragged down the broader Hang Seng index in morning trade, with heavyweights such as Tencent and Alibaba dropping around 6% each.

• Malaysia’s central bank is expected to hold its benchmark overnight policy rate steady at 3%, economists polled by Reuters showed.
• In Southeast Asia, Malaysia’s central bank is expected to hold its overnight policy rate steady at 3%, according to a Reuters poll.
• The top movers in Shanghai index were ARTS Group, Dalian Thermal Plant, Fujian Raynen Tech, and Cybrid Technologies.
• Japan’s Nikkei 225 climbed 1.14% in early trade and the Topix was up 0.82%.

Hong Kong stocks and mainland China markets fell sharply Monday while other major Asia-Pacific markets rose. A market capitalization-weighted index of 40 of the largest companies that trade on the Hong Kong Exchange. The Hang Seng Index is maintained by a subsidiary of Hang Seng Bank, and has been published since 1969.

“The sharp and sudden drop prompted market speculation the Ministry of Finance (MoF) intervened again on Monday following Friday’s intervention,” according to a Commonwealth Bank of Australia note. “Since the meeting is mostly about personnel changes, the economic recovery might not come as soon as we have hoped,” Tai told CNBC in an email. O’Leary also praised Zuckerberg for maintaining focus across his social-media sites on storytelling. “These platforms are remarkably good at allowing small businesses to tell the story of their product or service.”

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The KBW regional bank index was up about 2%, outpacing a rise in the financial sector. The robot, Autocado, could cut guacamole prep time by half, the company said. Federal Reserve officials still have a recession as the most likely base case for the U.S. economy, but there was growing optimism at the last meeting that a true “soft landing” could be achieved. The strategist also named two ways investors could “cheaply” insulate themselves from a potential downturn. It added that while Malaysia’s core inflation has also moderated, “it remains elevated relative to the long-term average amid lingering demand and cost factors.”

As we wrote here, inflation dropped to 3.0% in June while core inflation dropped to 4.8%. The main theme in the market this week is on China’s and US economic slowdown. There are signs that the Chinese economy is recovering at a significantly slow pace than expected. The Shanghai Index and the Hang Seng drifted upwards on Thursday as investors ignored the weak economic data from China. Hong Kong’s Hang Seng index jumped by 2.60% while the Shanghai rose by 0.86%. Following the meeting, Li said that internet-platform companies can play a leading role in China’s development, job creation and global competitiveness, according to Chinese state media.

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Oracle CEO Safra Catz also trimmed her holdings of the company, selling $470 million worth of the company’s stock. Inflation data are a key factor in the Fed’s decision-making next month and beyond, with investors increasingly betting on continued economic strength. The main catalyst for the Hang Seng and the Shanghai index is the recent American consumer inflation data.

His comments offered further evidence that Beijing has moved past its two-year campaign to rein in the sector, and came days after Chinese regulators slapped fintech giant Ant Group with a roughly $1 billion fine. The shares of China’s internet-platform companies rose in Hong Kong trading on Thursday, on fresh signs that a brutal regulatory crackdown on the sector is behind them. Malaysia’s central bank has held its overnight policy rate at 3%, in line with expectations from economists polled by Reuters. Overnight in the U.S., markets ended lower after the Fed minutes, with the Dow Jones Industrial Average slipping 0.38% and the S&P 500 dropping 0.2%.

• Whether oil prices rise or fall, energy stocks are still worth investing in, according to Foord Asset Management’s Brian Arcese.
• The strategist also named two ways investors could “cheaply” insulate themselves from a potential downturn.
• Oracle chief technology officer Larry Ellison sold Oracle stock for the first time in two years, shedding $848 million in the first half.
• The shares of China’s internet-platform companies rose in Hong Kong trading on Thursday, on fresh signs that a brutal regulatory crackdown on the sector is behind them.
• Dubbing them “greenablers,” Goldman says they are less appreciated by ESG investors but could be “in the framework of investors potentially looking beyond Solar/Wind/Water stocks.”

These 50 constituent companies represent about 58% of the capitalisation of the Hong Kong Stock Exchange. Analysts believe that China’s economy is doing worse than what official numbers are saying. They cite the ongoing weakness in the commodity market and falling shipping costs. As I wrote on Monday, ocean shipping costs have tumbled to 2019 lows. The report added that Goldman cited investor concerns over the the banks’ exposure to local government debt, earnings risk as well as diverging fortunes among individual banks.

The home-sharing site’s shares are up 59% since the start of the year. The top movers in Shanghai index were ARTS Group, Dalian Thermal Plant, Fujian Raynen Tech, and Cybrid Technologies. In Hong Kong, the biggest movers were companies like AIA Group, Alibaba, Alibaba Health Information, ANTA Sports, and Baidu. For one, a dovish Fed leads to a weaker US dollar and a risk-on sentiment in the market.

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Both indexes snapped three-day winning streaks, and the Nasdaq Composite slipped 0.18% to round off the losses in the three indexes. Whether oil prices rise or fall, energy stocks are still worth investing in, according to Foord Asset https://g-markets.net/helpful-articles/what-are-triangle-patterns-formations-for-crypto/ Management’s Brian Arcese. Authorities in Japan reportedly intervened in the market on Friday, causing the yen to sharply strengthen before weakening again. But as far as retail investors are concerned, the rally isn’t over yet.

South Korea and Japan stocks gave up some gains but were still higher than their last closes. Around noon in Singapore, the Kospi in South Korea gained 0.77%, and the Kosdaq added 1.87%. Meanwhile, Twitter has had problematic relations with its advertisers, many of whom left the platform when Musk took over in October 2022. A recent report showed that the company lost 59% of its ad sales in a year. Meanwhile, insider buying on Wall Street has dropped to around half of the levels reported last year.

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Imports, on the other hand, declined by 6.8% after falling by 4.8% in May. The Federal Reserve expects to raise rates further from current levels, albeit at a slower-than-expected pace, a summary from the central bank’s June meeting showed. Malaysia’s central bank is expected to hold its benchmark overnight policy rate steady at 3%, economists polled by Reuters showed. Mainland China markets briefly entered positive territory on better-than-expected economic data before falling again. The Shanghai Composite in mainland China was 2.02% lower at 2,977.56, and the Shenzhen Component lost 2.055% to 10,694.61.

The central bank noted that the country’s headline inflation has continued to ease amid lower cost factors. In Southeast Asia, Malaysia’s central bank is expected to hold its overnight policy rate steady at 3%, according to a Reuters poll. Oracle chief technology officer Larry Ellison sold Oracle stock for the first time in two years, shedding $848 million in the first half.

Mainland China markets turned positive briefly before going back into negative territory. The Shanghai Composite in mainland China was down 0.89% and the Shenzhen Component shed 0.725%. MSCI’s broadest index of Asia-Pacific shares outside Japan was 1.18% lower. Tai Hui, JPMorgan Asset Management’s APAC chief market strategist, said a combination of factors has been driving the Hong Kong market recently, including higher U.S. Explore the Comments tab, connect with the community, share insights, and discuss the latest market trends with other investors. Meanwhile, AirBnB co-founder Joe Gebbia sold off $893 million of his company’s stock during the first half.

Data are provided ‘as is’ for informational purposes only and are not intended for trading purposes. Data may be intentionally delayed pursuant to supplier requirements. The GDP report was due to be released during the Communist Party of China’s National Congress, but was delayed along with other data.

Because of the size of many of these companies’ market capitalizations, any moves after earnings will likely impact the entire market. A separate report on Thursday revealed that China’s exports and imports continued falling in June. Exports dropped by 12.4% in June after falling by 7.5% in the previous month.