Hang Seng Index, ASX 200, Nikkei Index: US Inflation and Tech Stocks

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Updated: Apr 28, 2024, 23:20 GMT+00:00

Key Points:

The ASX 200 reopened with a crash on Friday (April 26), while the Hang Seng Index extended its winning streak to five sessions.
On Monday (April 29), investors must consider the US Personal Income and Expenditures Report and the US tech stock gains from Friday (April 26).
Corporate earnings results and central bank chatter also warrant investor attention.

US Equity Markets: Personal Income and Expenditures Report

On Friday (April 26), the all-important US Personal Income and Expenditures Report attracted investor interest.

Personal income and spending increased by 0.5% and 0.8% in March. Furthermore, the US Core PCE Price Index increased 2.8% year-on-year in March after advancing 2.8% in February.

The numbers impacted investor expectations of a September Fed rate cut and buyer demand for riskier assets.

On Friday, the Dow advanced by 0.40%. The Nasdaq Composite Index and the S&P 500 rallied 2.03% and 1.02%, respectively. US corporate earnings results fueled buyer demand for tech stocks. Alphabet (GOOGL) and Microsoft (MSFT) released better-than-expected earnings results after hours on Friday

The US Personal Income and Expenditures Report and US equity market moves will set the tone for the Asian Monday session.

Asian Economic Calendar: Earnings and the Bank of Japan

On Monday (April 29), investors should consider corporate earnings throughout the Asian session.

Bank of China (HK3988), BOC Hong Kong (HK2388), China Construction Bank (HK0939), Industrial Commercial Banking Corp (HK1398), and MGM China Holdings (HK2282) are marquee Hang Seng Index-listed names releasing earnings on Monday.

While earnings are in focus, investors should also monitor central bank chatter. The RBA needs monitoring after the recent inflation data from Australia.

Commodities: Crude Oil, Gold, and Iron Ore

On Friday, gold (XAU/USD) rose by 0.24% to $2,338. WTI crude oil prices advanced by 0.34%, ending the session at $83.85.

On the Singapore Futures Exchange, iron ore prices fell by 0.13%. Iron Ore Spot ended Friday up 0.08%.

The Futures Markets

On Monday, the ASX 200 and Nikkei were up by 24 and 450 points, respectively. However, there is no trading on the exchanges in Japan. The markets are closed for Showa Day.

ASX 200

ASX200 290424 Daily Chart

The ASX 200 tumbled 1.39% on Friday, ending the session at 7,575.91. News of BHP Group Ltd. (BHP) bidding for Anglo American contributed to the decline in BHP shares. Banking, oil, and tech stocks contributed to the losses. The S&P ASX All Technology Index (XTX) slid by 1.25%. Hotter-than-expected producer prices for March also impacted buyer demand for ASX 200-listed stocks.

ANZ Group Holdings Ltd. (ANZ) and Westpac Banking Corp. (WBC) saw losses of 1.93% and 1.91%, respectively. Commonwealth Bank of Australia (CBA) fell by 1.75%, while the National Australia Bank Ltd. (NAB) declined by 1.44%.

Woodside Energy Group Ltd (WDS) and Santos Ltd (STO) ended the session down 1.09% and 0.39%, respectively.

Mining stocks had a mixed session. BHP Group Ltd (BHP) tumbled 4.60%. However, Rio Tinto Ltd. (RIO) and Fortescue Metals Group Ltd. (FMG) rallied 1.14% and 3.35%, respectively.

Gold stocks Northern Star Resources Ltd. (NST) and Evolution Mining Ltd (EVN) saw gains of 1.48% and 2.02%, respectively.

Hang Seng Index

HSI 290424 Daily Chart

On Friday, the Hang Seng Index rallied 2.12%, extending its winning streak to five sessions. Tech and real estate-related stocks contributed to the gains. The Hang Seng Tech Index (HSTECH) advanced by 4.61%, with the Hang Seng Mainland Properties Index (HSMPI) surging by 6.34%.

Alibaba (9988) and Tencent (0700) ended the session up 3.15% and 2.65%, respectively.

However, Bank stocks had a mixed Friday session. HSBC (0005) advanced by 0.31%. China Construction Bank (0939) and Industrial Commercial Bank (1398) saw losses of 0.40% and 0.48%, respectively.

The Nikkei 225

Nikkei 290424 Daily Chart

(Graph for reference purposes only)

The Nikkei 225 ended the Friday session up 0.81%.

Bank stocks had a mixed end to the week. Sumitomo Mitsui Financial Group Inc. (8316) declined by 0.10%, while Mitsubishi UFJ Financial Group Inc. (8306) gained 0.06%.

It was a mixed session for the main components of the Nikkei 225.

Tokyo Electron Ltd. (8035) and Softbank Group Corp. (9948) saw gains of 1.88% and 2.35%, respectively. Sony Group Corporation (6758) rose by 0.08%, with KDDI Corp. (9433) rising by 0.76%.

However, Fast Retailing Co. Ltd. (9983) bucked the trend, falling by 0.36%.

For upcoming economic events, refer to our economic calendar.

About the Author

Bob Masonauthor

With over 20 years of experience in the finance industry, Bob has been managing regional teams across Europe and Asia and focusing on analytics across both corporate and financial institutions. Currently he is covering developments relating to the financial markets, including currencies, commodities, alternative asset classes, and global equities.