Home
 Portfolio Manager
 Fund
 ETF
 Fund Tools
 Fund Selector
 Funds to Explore
 Category Quickrank
 Guaranteed Funds
 

Asia ETF Roundup (Market) – February 2019

India cut rates; China A-share markets spiked over 10%.

Jackie Choy, CFA 07/03/19

For the latest ETF industry news, please refer to our “Asia ETF Roundup (Industry) – February 2019”.

Major Markets Performance

Major equity markets generally continued on an upward trend in February with the US, the UK, Japan and Hong Kong market rising 2-3%. The China onshore markets were particularly strong in February (CSI 300 +14.6%; Shanghai Composite +13.8%). Mainland stocks surged following the news that the US had delayed a series of tariffs on Chinese goods that was scheduled to begin on 1 March. Emerging markets’ performance was mixed. Stocks in Vietnam performed well, rising 8.6%, while stocks in Brazil, Indonesia and Pakistan dropped by around 5% (as measured by their respective MSCI indices in US dollar terms).

The US dollar appreciated 0.6% (as measured by the ICE Spot Index). Asian currencies generally depreciated against the greenback. The Japanese Yen and the Korean Won fell 2.2% and 1.1%, respectively. On the other hand, the Chinese Yuan rose slightly against the US dollar in February, appreciating by 0.3%, and putting its year-to-date gains versus the USD at 2.7%.

Precious metals’ performance was mixed. Platinum rose another 6.1% in February, putting its year-to-date gains at 10.5%. However, gold and silver dropped for the month of February, slipping 0.3% and 1.6% respectively.

Economic and Market News

India Cuts Rates

  • India Cuts Rates by 25bps – The Reserve Bank of India decided on 7 February to cut its key rate by 25bps to 6.25%. This marks India’s first rate cut since August 2017, which was followed by two rate hikes in 2018.

 

China Economic Data: Inflationat 1.7% in January; Caixin/Markit PMI Rebounded to 49.9 in February,Official PMI Fell Further to 49.2

  • China’s inflation rate eased further to 1.7% for January from December’s reading of 1.9%.
  • Both the China’s official PMI and the Caixin/Markit PMI remained below the 50-point level. The official PMI dipped further to 49.2 in February from January’s reading of 49.5. Meanwhile, the Caixin/Markit PMI rebound somewhat to 49.9 in February, compared to January’s reading of 48.3.
About Author Jackie Choy, CFA

Jackie Choy, CFA  

Jackie Choy, CFA is the Director of ETF Research for Morningstar Investment Management Asia