Hang Seng Index, ASX200, Nikkei 225: Fed Fear Resurfaces

Key Insights:

• It was a mixed start to the week, with the Hang Seng Index and ASX 200 seeing red while the Nikkei enjoyed a bullish morning.
• Investor caution ahead of Fed chatter this afternoon and economic data from China on Tuesday tested buyer appetite.
• However, the Nikkei found further support following last week’s earnings results.

Market Overview

It was a mixed Monday morning session for the Asian markets. The Hang Seng Index and ASX 200 struggled, while the Nikkei enjoyed a bullish session.

Economic indicators from Friday resonated, with a sharp fall in US consumer sentiment weighing on riskier assets. However, investor angst toward Fed monetary policy left the Hang Seng and the ASX 200 in the red, with FOMC members Kashkari, Bostic, and Barkin speaking later today.

Following disappointing economic indicators from China, investors were also mindful of industrial production, fixed asset investment, and retail sales figures from China. Another set of weak numbers would fan the recessionary flames.

On Friday, the NASDAQ Composite Index fell by 0.35%, with the S&P 500 and Dow seeing losses of 0.16% and 0.03%, respectively.

This morning, there were no economic indicators to distract investors.

ASX 200

The ASX 200 was down 0.22%, with bank stocks weighing.

The big-4 had a mixed morning. The Commonwealth Bank of Australia (CBA) and ANZ Group (ANZ) saw losses of 0.53% and 0.51%, respectively, with Westpac Banking Corp (WBC) falling by 0.19%. However, the National Australia Bank (NAB) bucked the trend, gaining 0.11%.

Mining stocks had a bullish morning. Rio Tinto (RIO) and BHP Group Ltd (BHP) saw gains of 0.29% and 0.28%, respectively, with Fortescue Metals Group (FMG) rising by 0.40%. Newcrest Mining (NCM) was up 1.20%.

Oil stocks had a mixed morning. Woodside Energy Group (WDS) rose by 0.71%, while Santos Ltd (STO) fell by 0.14%. Brent Crude was down 0.71% to $73.64 this morning.

Hang Seng Index

This morning, the Hang Seng was down 0.06%, with investors cautious ahead of tomorrow’s numbers from China.

Considering the main components, Tencent Holdings Ltd (HK:0700) was up 2.13%, while Alibaba Group Holding Ltd (HK:9988) fell by 0.53%.

However, bank stocks had a bearish morning session. HSBC Holdings PLC fell by 0.34%, with the Industrial and Commercial Bank of China (HK:1398) and China Construction Bank (HK: 0939) seeing losses of 0.23% and 0.94%, respectively.

CNOOC (HK: 0883) gained 0.95%.

Nikkei 225

The Nikkei 225 rose by 0.40% this morning, with a stronger USD/JPY and sentiment toward corporate earnings providing support.

Sumitomo Mitsui Financial Group (8316) and Mitsubishi UFJ Financial Group rose by 0.98% and 1.07%, respectively. Both release earnings results today.

Considering the main components, Tokyo Electron Limited (8035) bucked the trend, falling by 1.46%.

However, KDDI Corp (9433) was up 2.17%, with Sony Corp (6758) rising by 0.39%. Fast Retailing Co (9983) and SoftBank Group Corp. (9984) saw gains of 0.70% and 0.06%, respectively.

Check out our economic calendar for today’s economic events.