Global Market Quick Take: Asia – July 11, 2023 Global Market Quick Take: Asia – July 11, 2023 Global Market Quick Take: Asia – July 11, 2023

Global Market Quick Take: Asia – July 11, 2023

Macro 7 minutes to read
Redmond Wong

Chief China Strategist

Summary:  The Nasdaq announced a special rebalance to reduce the concentration of megacap tech stocks in the Nasdaq 100. As a result, stocks like Alphabet, Amazon, Tesla, Apple, Microsoft, and Nvidia experienced declines ranging from 0.8% to 2.5%, with Alphabet being the hardest hit. However, Meta saw a 1.2% gain as its new Threads App reached 100 million users. Treasuries rallied, leading to falling yields ahead of the upcoming CPI report. The Hang Seng Index rebounded with a 0.6% gain, driven by Chinese Internet and consumer stocks, with Alibaba rising by 3.2%. Consumer prices in China remained flat while producer prices fell deeper into deflation. The Japanese Yen strengthened due to the decrease in US Treasury yields, with USDJPY falling by 0.7% to 141.30.

What’s happening in markets?

US equities (US500.I and USNAS100.I): Megacap tech stocks decline ahead of Nasdaq 100 rebalance; Meta shows resilience with Threads app success

Megacap tech stocks declined as Nasdaq announced a special rebalance to reduce the concentration of the Nasdaq 100 on the largest stocks in the index, effective on July 24, 2023. Alphabet (GOOGL:xnas), Amazon (AMZN:xnas), Tesla (TSLA:xnas), Apple (AAPL:xnas), Microsoft (MSFT:xnas), and Nvidia (NVDA:xnas) were among the top losing stocks in the Nasdaq 100 on Monday, with declines ranging from 0.8% to 2.5%, with Alphabet experiencing the largest decline. Despite the downturn in these megacap names, the Nasdaq 100 managed to finish the session nearly unchanged. The S&P 500 Index, buoyed by strong performance in industrial, healthcare, energy, and financials sectors, gained 0.2%. Conversely, small-cap stocks outperformed as the Russell 2000 Index advanced 1.6%.

On a positive note, Meta (META:xnas) saw a gain of 1.2% as the social media giant's new Threads App reached 100 million users. As the stock is ranked 7th by market cap within the Nasdaq, it may not be as heavily impacted by the upcoming rebalancing.

Treasuries (TLT:xnas, IEF:xnas, SHY:xnas): Yields fall ahead of CPI report

Treasuries rallied, resulting in falling yields as traders adjusted their positions ahead of the upcoming CPI report on Wednesday. Significant steepening trades occurred in the futures market, while a considerable amount of buying in the cash markets focused on the front end and the belly of the curve. This led to declines in yields for the 2-year and 5-year notes, with decreases of 9 bps to 4.86% and 12 bps to 4.24% respectively. In contrast, the 10-year yield decreased by 7 bps to 3.99%, and the 30-year yield only slid by 1 bp to 4.03%.

Hong Kong & Chinese equities (HK50.I & 02846:xhkg): Tech and consumer stocks lead rebound

The Hang Seng Index rallied 0.6%, snapping a three-day consecutive loss as investors welcomed the People’s Bank of China’s (PBOC) statement last Friday evening that suggested the end of the scrutiny of financial services businesses of China’s internet giants after it imposed fines on Alibaba’s Ant Group and Tencent’s Tenpay. Alibaba (09988:xhkg) gained 3.2%, and Tencent (00700:xhkg) added 0.7%. The Hang Seng Tech Index gained 1.1%. The information technology sector, rising 1.4%, was the top-performing sector within the Hang Seng Composite Index.

While China’s June CPI inflation was flat Y/Y and the PPI fell 5.4% Y/Y in June, consumer discretionary stocks outperformed disregarding the consumer price disinflation and producer price deflation. Prada (01913:xhkg) gained 4.5%, and Jiumaojiu added 3.1%. China Tourism Group Duty Free (01880:xhkg) surged 6.6%.

Despite the Hong Kong Monetary Authority relaxing mortgage financing ratios last Friday evening, Hong Kong developers pared early gains, and some leading names reversed to losses.

In the A-share market, northbound flows ended three consecutive days of net selling and registered net buying of over RMB 1 billion. The CSI300 gained 0.5%, driven by tourism, catering, white liquor, solar, lithium battery, and electric generation stocks.

FX: DXY slips 0.3% as Japanese Yen strengthens

The US dollar index (DXY) declined by 0.3%, as the dollar weakened against the majority of G10 currencies, excluding the AUD and CAD. The Japanese Yen demonstrated significant strength, primarily influenced by the decrease in US Treasury yields. In addition, a Bank of Japan report highlights moderate upward pressure in wages across all regions in Japan. USDJPY fell by 0.7% to 141.30. Despite China's soft CPI and PPI figures, USDCNH remained relatively stable at 7.2270.

Crude oil falls modestly

NYMEX WTI crude oil futures (CLQ3) slid 0.9% to USD73.20 per barrel in a thin session.

What to consider?

Nasdaq 100 Index to reduce concentration through weighting adjustment

The Nasdaq 100 index is preparing for a significant adjustment to address the issue of concentration. Currently, seven stocks—Microsoft, Apple, Nvidia, Tesla, Alphabet, Meta Platforms, and Amazon—hold a substantial 55% of the index's total weight. To tackle overconcentration, a special rebalance is scheduled before the market opens on Monday, July 24. The aim is to redistribute the weights and reduce concentration. The new weightings will be announced on Friday, July 14. It's important to note that no stocks will be added or removed from the index during this process.

Currently, the weightings of the magnificent seven are as follows: Microsoft at 12.9%, Apple at 12.5%, Alphabet at 7.4%, Nvidia at 7.0%, Amazon at 6.9%, Tesla at 4.5%, and Meta Platforms at 4.3%. The rebalance will likely result in a reduction in the combined weight of the top five companies, which currently stands at 46.7%, down to 38.5%. Additionally, the weight of Tesla may also experience a slight decrease as component stocks outside the top five market cap companies are not supposed to have a weight exceeding 4.4%.

China’s CPI is unchanged Y/Y while falling 0.2% M/M in June; PPI deflation deepens

China’s CPI came in unchanged in June from a year ago but fell sequentially 0.2% from May.  Energy prices fell 0.7% M/M and 9.3% Y/Y, weighing on the CPI. Prices of manufactured consumer goods fell 0.3% M/M and 2.7% Y/Y, probably impacted by the 618 promotion discount. PPI declined 5.4% Y/Y and 0.8% M/Y, diving deeper into deflation, driven mainly by weaknesses in raw material prices, such as crude oil and coal.

A Bank of Japan report highlights upward pressure on wages

In its quarterly Regional Economic Report released on Monday, the Bank of Japan (BoJ) said “many regions reported cases where wage increases by small and mid-sized firms were broadening at a degree unseen in recent years”. The report also said all nine regions reported economies in their respective regions “had been picking up or recovering moderately” and the employment and income situation had been “improving moderately”.

The number of corporate bankruptcies surges in Japan

According to Tokyo Shoko Research, the number of corporate bankruptcies rose to 4,042 cases, a 32% increase from last year and the highest level in five years. The credit research company cited the pandemic, rising material costs, and higher labor costs among the factors causing financial stress in Japanese corporate.

Foxconn walks away from a semiconductor JV in India

Taiwanese microchip contract manufacturer Foxconn said on Monday that the company has come to an agreement with India’s Vedanta to withdraw from a semiconductor and display manufacturing joint venture in Gujarat, the home state of Indian Prime Minister Modi.

For a detailed look at what to watch in markets this week – read our Saxo Spotlight.

For a global look at markets – tune into our Podcast.


Quarterly Outlook 2024 Q3

Sandcastle economics

01 / 05

  • Macro: Sandcastle economics

    Invest wisely in Q3 2024: Discover SaxoStrats' insights on navigating a stable yet fragile global economy.

    Read article
  • Bonds: What to do until inflation stabilises

    Discover strategies for managing bonds as US and European yields remain rangebound due to uncertain inflation and evolving monetary policies.

    Read article
  • Equities: Are we blowing bubbles again

    Explore key trends and opportunities in European equities and electrification theme as market dynamics echo 2021's rally.

    Read article
  • FX: Risk-on currencies to surge against havens

    Explore the outlook for USD, AUD, NZD, and EM carry trades as risk-on currencies are set to outperform in Q3 2024.

    Read article
  • Commodities: Energy and grains in focus as metals pause

    Energy and grains to shine as metals pause. Discover key trends and market drivers for commodities in Q3 2024.

    Read article


The Saxo Group entities each provide execution-only service, and access to analysis permitting a person to view and/or use content available on or via the website is not intended to and does not change or expand on this. Such access and use are at all times subject to (i) The Terms of Use; (ii) Full Disclaimer; (iii) The Risk Warning; (iv) the Inspiration Disclaimer and (v) Notices applying to Trade Inspiration, Saxo News & Research and/or its content in addition (where relevant) to the terms governing the use of hyperlinks on the website of a member of the Saxo Group by which access to Saxo News & Research is gained. Such content is therefore provided as no more than information. In particular, no advice is intended to be provided or to be relied on as provided nor endorsed by any Saxo Group entity; nor is it to be construed as solicitation or an incentive provided to subscribe for or sell or purchase any financial instrument. All trading or investments you make must be pursuant to your own unprompted and informed self-directed decision. As such no Saxo Group entity will have or be liable for any losses that you may sustain as a result of any investment decision made in reliance on information which is available on Saxo News & Research or as a result of the use of the Saxo News & Research. Orders given and trades effected are deemed intended to be given or effected for the account of the customer with the Saxo Group entity operating in the jurisdiction in which the customer resides and/or with whom the customer opened and maintains his/her trading account. Saxo News & Research does not contain (and should not be construed as containing) financial, investment, tax or trading advice or advice of any sort offered, recommended or endorsed by Saxo Group and should not be construed as a record of our trading prices, or as an offer, incentive or solicitation for the subscription, sale or purchase in any financial instrument. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, would be considered as a marketing communication under relevant laws.

Trading in financial instruments carries risk, and may not be suitable for you. Past performance is not indicative of future performance. Please read our disclaimers:
Notification on Non-Independent Investment Research (
Full disclaimer (

None of the information contained here constitutes an offer to purchase or sell a financial instrument, or to make any investments. Saxo Markets does not take into account your personal investment objectives or financial situation and makes no representation and assumes no liability as to the accuracy or completeness of the information nor for any loss arising from any investment made in reliance of this presentation. Any opinions made are subject to change and may be personal to the author. These may not necessarily reflect the opinion of Saxo Markets or its affiliates.

Saxo Markets
88 Market Street
CapitaSpring #31-01
Singapore 048948

Contact Saxo

Select region


Saxo Capital Markets Pte Ltd ('Saxo Markets') is a company authorised and regulated by the Monetary Authority of Singapore (MAS) [Co. Reg. No.: 200601141M ] and is a wholly owned subsidiary of Saxo Bank A/S, headquartered in Denmark. Please refer to our General Business Terms & Risk Warning to consider whether acquiring or continuing to hold financial products is suitable for you, prior to opening an account and investing in a financial product.

Trading in financial instruments carries various risks, and is not suitable for all investors. Please seek expert advice, and always ensure that you fully understand these risks before trading. Trading in leveraged products such as Margin FX products may result in your losses exceeding your initial deposits. Saxo Markets does not provide financial advice, any information available on this website is ‘general’ in nature and for informational purposes only. Saxo Markets does not take into account an individual’s needs, objectives or financial situation.

The Saxo trading platform has received numerous awards and recognition. For details of these awards and information on awards visit

The information or the products and services referred to on this website may be accessed worldwide, however is only intended for distribution to and use by recipients located in countries where such use does not constitute a violation of applicable legislation or regulations. Products and Services offered on this website are not intended for residents of the United States, Malaysia and Japan. Please click here to view our full disclaimer.

This advertisement has not been reviewed by the Monetary Authority of Singapore.

Apple and the Apple logo are trademarks of Apple Inc, registered in the US and other countries and regions. App Store is a service mark of Apple Inc. Google Play and the Google Play logo are trademarks of Google LLC.