A
sian equities and currencies were mixed overnight, with South Korea and Mainland China outperforming Indonesia. President Trump's tariff threat weighed on sentiment, but it's unclear if this or the recent strong performance of Asian stocks sparked today's profit-taking in Hong Kong growth/internet stocks.
Mainland China and Hong Kong hard technology stocks, particularly those in semiconductors and high-end manufacturing, had a strong day. This comes as President Xi met with private sector/entrepreneurs, with only speakers from manufacturing firms on the list. Mainland investors bought $1.327 billion of Hong Kong stocks via Southbound Stock Connect, focusing on internet stocks that dipped today.
A three-year plan to promote domestic consumption was announced by the State Administration for Market Regulation, likely in preparation for the Dual Sessions in March. Humanoid robots were a hot topic in Mainland China, with many companies rumored to be entering mass production in 2025. This speculation drove significant gains in related stocks.
Real estate stocks had a strong day despite new home prices falling -0.07% and used home prices falling -0.34%. The catalyst was the rise of 1st Tier cities, which increased for the second consecutive month. The State Council announced an "Action Plan for Stabilizing Foreign Investment in 2025," removing barriers to foreign investment in telecommunications, medical care, and education.
The Hang Seng and Hang Seng Tech had a rare diverge down -0.14% and up +0.59%, respectively, on volume down -22.46%. Value and small capitalization stocks gained more than growth and large capitalization stocks. Top sectors were technology, consumer staples, and real estate.
Shanghai, Shenzhen, and the STAR Board gained +0.81%, +1.90%, and +2.31%, respectively, on volume down -4.31%. Growth and small capitalization stocks outperformed value and large capitalization stocks. Top sectors were technology, industrials, and real estate.
CNY and the Asia dollar index fell versus the US dollar, while Treasury bonds rallied. Copper and steel prices rose.
