Mixed cues from the developed market led to increased volatility in the Asia stock markets in the past week. However, momentum in the market is largely positive despite the strength in the dollar index and crude oil price, which can hurt the economic recovery.
Top Asia stock market indexes performed during the week.
Nikkie 225
After a positive start in 2024, the Japanese market is struggling to continue its upside-positive momentum due to a slowdown in the country’s economic recovery. In June 2024, the country’s services activity contracted for the first time in two years. Au Jibun Bank Services PMI data slipped from 53.8 in May to 49.4 in June. The expansion in services activity offset the contraction in manufacturing activity.
This is leading to reduced investor bets on a July Bank of Japan rate hike. The growth in the services sector is very crucial for Japan’s economy at this stage because the sector contributes about 70% to the Japanese economy.
The week starting 1st July 2024, Nikkei 225 has been trading with a positive bias. This Asia stock index was up by around 3.2% in the last week.
The daily chart of the Nikkei 225 index shows that the 41,000 level has become a strong resistance zone, while the 39,000 level offers immediate support. Currently, the market lacks momentum, and a break below the key support level could send the index below 35,000.
The top gainers in the Nikkei 225 index are Mitsubishi Ufj Financial Group, Tokio Marine Holdings Inc., and Ms&Ad Insurance Group Hldgs. The top losers are Bridgestone Corp, Nidec Corporation, and Japan Post Holding Co.
Hang Seng
The rally in tech stocks and the real estate sector has resulted in Hong Kong stocks making a positive start to the week starting 1 July 2024.
In China, the home sales downturn has slowed down through policy intervention. According to preliminary data from the China Real Estate Information Corporation, home sales have jumped 36% from May. However, Mainland China markets continue to struggle.
Looking at the daily chart of Hang Seng, the index has bounced higher from its key support level of 17,570. If the positive momentum persists, the next major resistances are at 18,200 and 18,600.
Top gainers in the Hang Seng are PetroChina Co, China Resource Land, and China Petroleum & Chemical Corp. The top losers are Nongfu Spring Co Ltd, China Merchants Bank Co Ltd, and China Shenhua Energy Company Ltd.
Nifty 50
The Indian stock market continues to rise higher on the back of strong interest from FIIs in the month of June. The FIIs bought Indian equities worth Rs 26,000 crores in June and all eyes are towards the budget, which is expected around July 22nd. Last week, both the Nifty 50 and Sensex hit fresh record highs. In the last five trading sessions, the Nifty 50 has been up by 1.81%.
Looking at the daily chart of Nifty 50, the Relative Strength Index shows that the upside momentum continues to be very strong. However, Nifty 50 is experiencing a bit of profit booking from the top. There is resistance at around 24,200, while the 23,600 level is expected to provide strong support.
The top gainers in the Nifty 50 index are HDFC Bank, Wipro, Reliance, Infosys, TCS, Tata Motors, etc. The top losers are Shriram Finance, Bharti Airtel, Bajaj Auto, Mahindra & Mahindra, etc.
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FAQs
What are the most tracked stock market indexes in Asia?
The Hang Seng of Hong Kong, the Nikkei 225 of Japan, the Shanghai Composite of Mainland China, and the Nifty 50 of India are Asia's leading stock market indexes.
What is the largest stock exchange in Asia Pacific?
As of March 2024, the largest stock exchange in Asia Pacific is Nikkei 225 of Japan.
What is the best-performing stock market index in Asia in 2024?
Taiwan Weighted, followed by Nikkei 225, is Asia's best-performing stock market index in 2024.
I’m Archana R. Chettiar, an experienced content creator with
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