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Asia-Pacific markets were largely up on Friday, the last trading day of the second quarter – a period that saw regional stocks plummet on factors such as escalating tensions global trade and higher interest rates in the United States. Chinese equities dominated the trading day, gaining more than 1%. Malaysia's similar market rebounded by more than 2%. But technology and trade indices in Japan and South Korea were stable after previous declines.
The great theme of Friday
The Asia-Pacific markets were split in the second quarter, with the dollar recovering, volatility fears of a trade war resulting in divergent performance.
What's Happening
The S & P / ASX index of Australia was the regional index that was the most resilient to the blues of the second quarter. It recorded a gain of more than 7% thanks to the good performance of financial stocks, commodities and energy, due to the rise in oil prices.
Investors were also surprised by India. Its benchmark, SENSEX, which tracks 30 major Indian stocks, gained more than 6% this quarter, even though the rupee has plummeted against the dollar.
The Japanese Nikkei was up almost 6% quarterly, but was down slightly in dollars due to the depreciation of the yen
Chinese equities suffered this quarter as the country's trade dispute with the states United States was intensifying. The Shanghai Composite and Hong Kong's Hang Seng index entered a bear market this week, having fallen 20% from their recent highs. Shanghai shares fell more than 10% in the second quarter, falling to their 2011 level.
Market Reaction
Australia has always been considered an indicator of the Chinese business cycle, according to Tai Hui , Asia Pacific Chief Strategist at JP Morgan Asset Management, given the country's strength in commodities. But this quarter, the China factor has not had much impact.
"The fact that he does not belong to the emerging market category has been helpful in keeping the Australian market afloat," he said.
Meanwhile, the relative lack of India's dependence on exports and its adequate foreign exchange reserves "Trade tensions and concerns about corporate bond failures are on the rise. radar of Chinese investors in the third quarter, "he added.
"Local investors are very vigilant about what the authorities are doing in terms of deleveraging," he said.
Markets should remain volatile in the near term, said Michele Mak, chief investment officer at HSBC Global Asset Management. But the recent stock market correction has created an opportunity for investors to "find quality names that can cross the cycle," she said.
"We are rather positive on Asian growth, so on Asian stocks" She added
Elsewhere
Oil futures paused in Asia after winning overnight: West Texas Intermediate crude , the US benchmark, fell 0.3% to $ 73.22 a barrel. The S & P 500's futures contracts rose 0.3% in Asia after slight gains in New York overnight.
Written at Joanne Chiu at [email protected]
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