Asian equities saw mixed movements with light volumes ahead of the US Fed interest rate update. Japan was closed for the Vernal Equinox holiday. Hong Kong and Mainland China experienced slight gains, driven by individual stock movements rather than macro events.
In Hong Kong, Tencent rose by +1.33% before its post-close results, while AIA fell by -2.44%. Alibaba gained +0.21%, Xiaomi dropped -2.42%, and Meituan fell -0.45% ahead of its Q4 financial results. Li Auto surged by +4.54% following an analyst downgrade.
Li Ning, a sports apparel maker, exceeded Q4 expectations, leading to a +5.67% increase in its stock price. Yum China, however, faced a -6.17% decline due to an analyst downgrade. Prada dropped by -2.28% following a revenue warning from Kering's Gucci brand.
Mainland investors showed interest in Hong Kong-listed stocks and ETFs, with a net buying of $817 million via Southbound Stock Connect. Shanghai and Shenzhen markets opened lower but closed near intra-day highs. The National Team utilized the largest ETFs with light volumes, while Northbound Stock Connect witnessed $773 million worth of net buying.
The 5-Year Loan Prime Rate remained unchanged at 3.95%, impacting mortgage rates. Chinese Foreign Minister Wang Yi visited Australia, marking the first senior Chinese official visit since 2017. There were discussions about potential expansions of bans on Huawei's semis ecosystem by the Biden Administration.
The Hang Seng and Hang Seng Tech indexes gained +0.08% and +0.65%, respectively, with Communication Services, Real Estate, and Consumer Discretionary sectors performing well. In Mainland China, Shanghai, Shenzhen, and the STAR Board saw gains, with Communication Services and Energy sectors leading the way.
Foreign investors bought a net $773 million worth of Mainland stocks via Northbound Stock Connect. Copper prices fell, while steel prices rose. Stay tuned for upcoming financial policy updates and market developments.
