Stocks in Asia Pacific Are Expected to Gain More in June

Stocks in Asia Pacific were higher in Monday morning as a Chinese data released over the weekend showed the country’s factory activity is expanding in May. Hong Kong’s Hang Seng index led gains among the region’s major indexes, surging 3.32% in morning trade with shares of life insurer AIA soaring 5.97%. 

Shanghai Composite Index closed Friday's session at 2852.351, up by +6.130, or 0.22%. The Index fell from 2900.000 level in mid-May and has only recovered approximately 50% of its losses as of Friday's close. The critical price points to watch, first at 2845.685, support the current crucial level that could determine its next move, 2809.665 the previous support level and 2900.00 the primary resistance level. The Shanghai Composite index rose 20 points or 0.7% to open at 2,872 after a private survey showed that factory activity in China returned to growth in May. The China Shanghai Composite Stock Market Index is expected to trade at 2765.35 points by the end of this quarter.

In Japan, the Nikkei 225 added 1.1% as shares of index heavyweight and conglomerate Softbank Group jumped 3.73%. The Topix index also traded 0.49% higher. The Japan NIKKEI 225 Stock Market Index is expected to trade at 21390.01 points by the end of this quarter. For long- trade position, we estimate it to trade at 19989.83.

South Korea’s main stock index opened higher on Monday as plans to loosen lockdown restrictions around the world fed optimism that the global economy could rebound. Still, tensions continued to heighten between the United States and China after President Trump eliminated special treatment for Hong Kong punishing Beijing for the recent events seen in the former British Colony. On the data front, customs data showed South Korea recorded a trade surplus of $0.44 billion in May. The South Korea Stock Market (KOSPI) is expected to trade at 1985.35 points by the end of this quarter. For long-trade position we estimate it to trade at 1858.30.

In Australia - The S&P/ASX200 is an index that represents the 200 top stocks based on their weighted market capital in the Australian stock market, S&P ASX 200 Index closed Friday's session at 5755.70 -95.4 down 1.63%. The Index was dragged down by the Major banks following a three-day surge, which saw the big four banks share prices rose more than 20%. The primary support levels are estimated at 5735.00, 5660.00, 5534.00. The Australia S&P/ASX 200 Stock Market Index is expected to trade at 5652.10 points by the end of this quarter.

In New Zealand - The NZX 50 decreased 660 points or 5.73% since the beginning of 2020, according to trading on a contract for difference (CFD) that tracks this benchmark index from New Zealand. The New Zealand Stock Market (NZX 50) is expected to trade at 10718.09 points by the end of this quarter, we estimate it to trade at 10240.35 in long-trade position.