CLNKraneShares
Week in Review
Asian equities have been principally up this week following US shares greater on a extra dovish tone from the US Fed.
China’s manufacturing buying managers’ index (PMI) got here in decrease than anticipated on Wednesday, indicating extra work to be executed even after better-than-expected GDP and financial indicators final week.
Some outperformers this week included Kweichow Moutai, which surged after saying a +20% value enhance for a few of its merchandise, and electrical car (EV) automakers following an introduced enhance in gross sales of latest vitality autos of +30% year-over-year (YoY) in October.
The White House confirmed that Biden and Xi will meet on the Asia Pacific Economic Cooperation (APEC) Conference in San Francisco following constructive nuclear nonproliferation talks.
Key News
Asian equities ended a powerful week greater following US shares’ soar on Powell’s press convention with Japan off on vacation.
Growth shares led the way in which greater in each Mainland China and Hong Kong, as Apple’s
AAPL
slower China progress has been attributed to Huawei’s success in competing towards the iPhone with its Mate 60 Pro telephones.
Also lifting tech and progress shares was a launch from the Ministry of Industry and Information Technology (MIIT) on “Guiding Opinions on the Innovation and Development of Humanoid Robots”. The launch offers a “strategic roadmap” for using humanoid robots in manufacturing. Could this be one other potential resolution to demographic points? The launch offers targets over the subsequent three-to-five years and mentions using robotic limbs or “machine our bodies”. Technology performs have been cited as beneficiaries.
The National Development and Reform Commission (NDRC) revealed a launch on financial help with a concentrate on “increasing home demand, particularly client demand, persevering with to increase efficient funding and stabilize the basics of international funding and international commerce.” Following final week’s Central Financial Work Conference (CFWC), we should always assume extra insurance policies will likely be launched.
Australia’s Prime Minister Albanese will go to China, turning into the primary Australian PM to go to in seven years. More importantly, international buyers purchased a internet $971 million price of Mainland shares through Northbound Stock Connect in a single day. The Mainland market noticed all sectors, aside from actual property shut greater as we speak. Meanwhile, Hong Kong noticed actually all sectors greater. Are buyers making a pivot to China because the financial system bottoms out? US-China diplomatic relations enhancing is one other clear catalyst.
Micron Technology’s
MU
President & CEO Sanjay Mehrotra is at the moment in China assembly with Minister of Commerce Wang Wentao.
Hong Kong’s most closely traded shares by worth have been Tencent, which gained +4.85%, Meituan, which gained +2.78%, and Alibaba, which gained +2.92%. Hong Kong-listed web shares outperformed their US counterparts yesterday together with EVs and different progress sub-sectors. It was an effective way to start out the weekend!
The Hang Seng and Hang Seng Tech indexes gained +2.52% and +3.25%, respectively, on quantity that elevated +27.83% from yesterday, which is 81% of the 1-year common. 434 shares superior whereas 61 shares declined. Main Board brief turnover elevated +22.77% from yesterday, which is 76% of the 1-year common (keep in mind that Hong Kong brief turnover contains ETF brief quantity, which is pushed by market makers’ ETF hedging). The progress issue and small caps outperformed the worth issue and huge caps. All sectors have been constructive, together with communication providers, which gained +4.31%, client discretionary, which gained +2.91%, and know-how, which gained +2.74%. All subsectors have been constructive, led by software program, semiconductors, and client providers. Southbound Stock Connect volumes have been gentle as Mainland buyers purchased a internet $147 million price of Hong Kong-listed shares and ETFs. Tencent, Xiaomi, and Kuiashou have been small internet buys whereas China Mobile and CNOOC have been small internet sells inside the mutual market entry program.
Shanghai, Shenzhen, and the STAR Board gained +0.71%, +1.17%, and +1.80%, respectively, on quantity that elevated +5.48% from yesterday, which is 92% of the 1-year common. 3,726 shares superior whereas 1,087 declined. The progress issue and small caps outperformed the worth issue and huge caps. All sectors have been constructive, aside from actual property, which fell -0.22%. The main sectors on the Mainland in a single day have been know-how, which gained +2.4%, client discretionary, which gained +1.42%, and client staples, which gained +1.29%. The top-performing subsectors have been laptop {hardware}, semiconductors, and workplace provides. Meanwhile, highways, ports, and metal have been among the many worst-performing. Northbound Stock Connect volumes have been reasonable as international buyers purchased a internet $971 million price of Mainland shares, together with PetroChina, China Merchants Bank, and Mindray, which have been all small internet buys. Meanwhile, Will Semiconductor was a reasonable internet promote and CATL and LXJM have been small internet sells. The Asia Dollar Index gained versus the US greenback, although CNY was flat. Treasury bonds have been offered whereas copper and metal rallied.
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Last Night’s Performancechart 1KraneShareschart 2KraneShareschart 3KraneShareschart 4KraneShareschart 5KraneShares
Last Night’s Exchange Rates, Prices, & Yields
CNY per USD 7.31 versus 7.31 yesterday
CNY per EUR 7.82 versus 7.77 yesterday
Yield on 1-Day Government Bond 1.58% versus 1.63% yesterday
Yield on 10-Year Government Bond 2.66% versus 2.66% yesterday
Yield on 10-Year China Development Bank Bond 2.72% versus 2.71% yesterday
Copper Price +0.28% in a single day
Steel Price +0.83% in a single day
https://www.forbes.com/sites/brendanahern/2023/11/03/growth-stocks-rebound-humanoid-robots-promoted-week-in-review/
