APAC markets see a muted week; China emerges as outperformer

Highlights 

  1. China, Japan markets have outperformed other markets.
  2. COVID-19 continues to weigh heavy on Aussie equities.
  3. The KOSPI has been the worst performer in the region.

In a muted week for the Asia Pacific equities, Chinese shares have outperformed its peers in the region over the last five days.

Both Chinese indices saw single-digit gains during the week. The Shanghai Composite gained 3.59% during the week, while the Shenzhen Component, on the other hand, gained 4.39%. Interestingly, the weekly gains in the Shenzhen Component are lower than the year-to-date return – the index has gained 2.29% in 2021 till now.

Japan, as well, witnessed single-digit growth. The Tokyo-based benchmark – Nikkei225 – closed the week 4.22% up. On a year-to-date basis, the Nikkei 225 has been 10.61% up till now – making it one of the better performers in the region.

Contrary to the trend in the Chinese markets, shares in the Chinese autonomous region of Hong Kong were muted in the week. The Hong Kong-based benchmark Hang Seng index closed the week 0.91% higher during the week. On a year-to-date basis, the Hang Seng index has corrected by 4.02%, primarily on the back of Chinese crackdown on the Hong Kong-listed Chinese tech giants.

On the other hand, Australia, which has been battling a strong third wave of the COVID-19 pandemic, has seen some of its annual gains being erased this week. The benchmark ASX200 closed down 1.55%, which brought the index’s year-to-date gains to 12.44%.

Worst hit, during the week, were the Korean markets. The Seoul-based KOSPI closed down with a loss 2.27%. The week also saw the South Korean markets witnessing a three-day losing streak.

Other markets were more or less flat – with losses and gains ranging less than 1%.

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