Asian equities markets were predominantly in the red due to strong US economic data and spiking oil prices on Middle East tensions. Taiwan experienced a strong earthquake, but thankfully, casualties were limited. Markets were relatively quiet ahead of Hong Kong and Mainland China holidays for the Ching Ming Festival and Tomb Sweeping Day, respectively. President Biden and President Xi had a two-hour discussion covering various topics, with both describing the conversation as candid and constructive. Janet Yellen is set to leave for China, followed by Secretary of State Blinken in the coming weeks.
Energy and materials were the top-performing sectors in Hong Kong and Mainland China, bolstered by higher oil and gold prices. Tesla’s disappointing sales announcement had an impact on the electric vehicle ecosystem, but new energy vehicle retail sales in China saw a significant year-over-year increase. Hong Kong’s growth stocks saw a dip, with Tencent, Xiaomi, and Alibaba all experiencing declines. Travel stocks, however, showed promise in anticipation of the holiday weekend. Mainland investors reacted by buying the Hong Kong dip while foreign investors sold Mainland-listed stocks.
The Hang Seng and Hang Seng Tech indexes fell on moderate volume, with materials leading the gains and technology and real estate sectors experiencing declines. Southbound Stock Connect saw Mainland investors buying Hong Kong-listed stocks, including Xiaomi and Tencent. In Shanghai, Shenzhen, and the STAR Board, energy and materials were the top-performing sectors, while technology and communication services fell. Northbound Stock Connect volumes were light, with foreign investors selling Mainland-listed stocks. Copper prices gained while steel prices fell.
Looking ahead, a webinar on Quadratic Capital’s normalization process is scheduled for April 24th. Microsoft’s dominance in the Dynamic Dividend Equity Index ETF is explored in a recent article. Exchange rates, prices, and yields remained relatively stable, with the CNY per USD holding steady and slight fluctuations in bond yields. Overall, the Asian equities market saw mixed performance with various sectors experiencing shifts in response to global economic data and geopolitical tensions.