Asian and Australian Stocks While You Were Sleeping

May 21, 2018

General Asian Markets Outlook

• Easing Sino-American trade tensions provided Japanese and Chinese markets with a lift today, with comments from US Treasury Secretary Steven Mnuchin about the US “putting the trade war on hold” providing optimism that a trade deal may be reached

Japanese Markets

• Japanese equities finished higher with the Nikkei 225 +0.31%
• Industrials (+0.71%), materials (+0.49%), and consumer discretionary (+0.41%) stocks are the biggest outperformers in the Nikkei 225
• Financials (-1.62%) is the only sector in the Nikkei 225 in negative territory
• Market breadth in the Nikkei 225 was strongly negative, with only 92 out of 225 stocks gaining on the day
• Trading in the Nikkei 225 was light today, with a volume that was 22.48% below its 10-day average
• Japan’s trade balance for April came in at ¥626.0 billion, well above estimates of a ¥440.0 billion trade balance projection, but below the balance in the previous month (¥797.3 billion in March)
• Japanese exports in April rose 7.8% on a y/y basis, softer than the expected growth of 8.7%. Japan’s import growth for April was also below forecasts (+5.9% y/y vs +9.8% y/y projected)
• According to a report by the Nikkei Asian review, Japanese companies reported aggregate earnings increases of 35% y/y in FY17 ($264 billion in net profit), which was a new single-fiscal year record. Auto and machinery making firms were the best performers

Chinese Markets

• Chinese and Hong Kong markets advanced broadly with the Hang Seng +0.60%, the CSI 300 +0.47%, and the Shanghai Composite +0.64%
• Consumer discretionary (+2.23%) and utilities (+1.22%) stocks were the biggest outperformers in the Hang Seng
• Energy (-0.55%) and telecommunications stocks (-0.28%) provided the most disappointing returns in the Hang Seng
• Market breadth in the Hang Seng was decidedly positive with 33 stocks advancing, compared to 16 declines
• The Hang Seng traded at slightly above average volume (+3.07% of its 10-day average)

Indian Markets

• Indian equities declined across the board with the Sensex -0.67% and the Nifty 50 -0.75%
• Consumer discretionary (-1.68%) and materials (-1.35%) stocks were the best performers in the Sensex
• Consumer staples (-0.02%) was the only sector in the Sensex to finish in positive territory
• Market breadth in the Sensex was overwhelmingly negative with 25 of 31 stocks closing in the red
• Indian markets traded at 105.01% of their average 10-day volume

Australian Markets

• Australian equities ended trading modestly lower with the ASX 200 -0.05%
• Telecommunications services (-1.37%) and materials (-0.51%) stocks were the largest underperformers in the ASX 200
• Healthcare (+1.37%) and industrials (+0.55%) were the best performing sectors in the ASX 200
• Market breadth in the ASX 200 was positive with 112 stocks advancing compared to 75 declines
• The ASX’s volume was 13.74% below it’s 10-day average
• The National Australian Bank (NAB) has extended its timeframe for an RBA rate increase to May 2019, with a further rate increase expected in November 2019

What is Going on with Asian/Australian currencies?

• The USD$ is stronger against most Asian currencies
• JPY¥ has depreciated by 0.43% relative to the USD$
• INR ? has weakened by 0.17% compared to the USD$
• The CNY¥ has declined by 0.9% in relation to the USD4
• The AUD$ has appreciated by 0.40% against the USD$

*Data in Price Return

Nikkei 225 Movers

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Hang Seng Movers

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Sensex Movers

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ASX 200 Movers

In local currency.

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