Asian equities were lower as China, Japan, and Thailand were closed today for the Labor Day holiday. Volumes in Hong Kong were off -23% from Friday, highlighting the start of a slow week as China’s markets will be closed until Thursday.
News surrounding Friday’s policy meeting was front and center as the 18.3% year-over-year GDP growth was driven by the low bar set by Q1 2020. The recovery was deemed “unbalanced and without a solid foundation”. While elements of the economy are improving “faster and stronger than expected, some are still feeling the pinch,” according to Xinhua. “Fiscal policy should be implemented thoroughly, while a prudent monetary policy should be adopted”. The economy is neither too hot nor too cold, according to policymakers.
Early indications are that levels of travel for China’s Labor Day so far are strong.
Hong Kong’s Q1 GDP growth was released after the close at +7.8% year-over-year versus an estimate of +3.7%. A Mainland media source interviewed a famous Chinese portfolio manager who remains constructive on consumption plays and health care in the Hong Kong market.
Secretary of State Anthony Blinken was interviewed on 60 Minutes last night. The previous administration used China issues as a distraction technique and it appears that we are in for more of the same, unfortunately. The Blinken interview was followed by an interview with Intel’s
The Hang Seng opened lower and stayed there closing -1.28% on volumes that were -23.83% lower than Friday and just 60% of the 1-year average. The Chinese companies listed in Hong Kong and within the MSCI
Mainland markets will be closed until Thursday.
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