Mainland Chinese Stocks Were Mixed on Wednesday
Investors, as well as analysts, are closely monitoring the situation as they would like to learn more about various factors. Interestingly, Asia-Pacific markets traded mixed as stocks in Australia, Japan, as well as South Korea struggled to hold onto earlier gains. Importantly, investors returned to risky assets, confident that a huge U.S. stimulus package will soon be approved.
Let’s start with Nikkei 225. It gave up early gains to close near flat at 29,036.56. At the same time, the Topix index gained 0.11% to end at 1,919.74.
Interestingly, South Korea’s Kospi pulled back gains of more than 1% after the market open and finished lower by 0.6%, or down 18 points at 2,958.12. In the meantime, the Kosdaq dropped 0.7%, or 6.29 points to end its trading day at 890.07.
In Australia, the benchmark ASX 200 was unable to sustain early gains and dropped 0.84%, 57.10 points, to 6,714.1. People should keep in mind that, the energy sector tumbled 2.98% as oil prices remained under pressure. Moreover, the heavily-weighted financial subindex fell 1.25% and the materials index dropped 2.51%.
It is worth noting that, mainland Chinese stocks were mixed on March 10. Importantly, the Shanghai composite finished near flat at 3,357.74. At the same time, the Shenzhen component gained 0.65%, or 87.62 points to end its trading day at 13,563.34.
Hong Kong’s Hang Seng index added 0.35% in late-afternoon trade.
Chinese stocks listed in the U.S.
Interestingly, only some of the big names listed in the U.S. fell to cheaper prices in 2020. As a reminder, these beaten-down stocks range from social media platform and dating app operator Momo to state-owned oil giants like PetroChina.
People should keep in mind that, the “Dogs of the Dow” investment strategy can’t be strictly applied to these subdued Chinese stocks. As a reminder, many of them do not pay dividends. Nevertheless, in a fast-growing market like China, the potential gains are significant. So, it makes sense to invest in Chinese companies.
Let’s have a look at the coronavirus relief bill. Hopefully, Democrats in the U.S. House of Representatives would like to pass the $1.9 trillion coronavirus relief bill on Wednesday. As a reminder, the legislation extends a $300 per week jobless benefit boost as well as programs expanding unemployment aid to millions more Americans through September 6. Millions of Americans are struggling to cope with financial problems and they need financial support from the government.
