Hang Seng Index, Nikkei Index, ASX 200: Hong Kong Eyes Seven Day Winning Streak

US Equity Markets: Dallas Fed Manufacturing Index and the Fed

On Monday (April 29), the Dallas Fed Manufacturing Index drew investor interest. The Index unexpectedly decreased from -14.4 to -14.5. Economists expected the Index to increase to -11.0.

The numbers diverged from market expectations that the US economy would likely avoid a recession.

On Monday, the Nasdaq Composite Index and the S&P 500 advanced by 0.35% and 0.32%, respectively. Moreover, the Dow rose by 0.38%.

The US equity market session will set the tone for the Tuesday Asian session. Investor caution could surface with the looming FOMC interest rate decision and press conference.

Asian Economic Calendar: Stats from Australia, China, and Japan in Focus

On Tuesday (April 30), economic indicators from Australia, China, and Japan warrant investor attention.

Industrial production, retail sales, and unemployment figures from Japan could influence the Bank of Japan interest rate trajectory. Upbeat numbers could raise expectations of a BoJ rate hike and drive buyer demand for the Yen. A stronger Yen could impact Nikkei-listed export stocks.

Economists forecast retail sales to increase 2.5% year-on-year in March after rising 4.6% in February. Furthermore, economists expect the unemployment rate to fall from 2.6% to 2.5%. However, economists forecast industrial production to increase by 3.4% in March after declining by 0.6% in February.

Retail sales figures from Australia may influence the RBA rate path. Recent inflation figures fueled speculation about an RBA rate hike. Better-than-expected retail sales figures could affect buyer demand for rate-sensitive ASX 200-listed stocks. Economists expect retail sales to increase by 0.2% in March after rising by 0.3% in February.

However, private sector PMI numbers from China also warrant investor attention. Higher-than-expected PMI numbers would fuel demand for riskier assets. Economists forecast the all-important Caixin Manufacturing PMI to slip from 51.1 to 51.0 in April.

Beyond the economic calendar, corporate earnings will also move the dial. HSBC (HK0005) is among the big names to release earnings results.

Commodities: Crude Oil, Gold, and Iron Ore

On Monday, gold spot (XAU/USD) fell by 0.11% to $2,335. WTI crude oil prices slid by 1.46%, ending the session at $82.63. Oil prices ended the session in negative territory amidst ceasefire talks in the Middle East.

On the Singapore Futures Exchange, iron ore prices fell by 0.13%. Iron Ore Spot ended Monday up 0.60%.

The USD/JPY, the Intervention Zone, and the Nikkei

The USD/JPY slid by 1.25% on Monday, ending the session at 156.306. Significantly, the USD/JPY hit a session high of 160.209. A weaker UDS/JPY could impact buyer demand for Nikkei-listed stocks. Market participants speculated that government intervention caused the USD/JPY to slide from 160. The USD/JPY could come under more pressure if there is another move toward 160.

The Futures Markets

On Tuesday, the ASX 200 and the Nikkei 225 were up by 12 and 450 points, respectively.

ASX 200

The ASX 200 advanced by 0.81% on Monday (April 29), tracking US equity market gains from Friday (April 26). Banking, mining, and tech stocks contributed to the Monday session gains. The S&P ASX All Technology Index (XTX) rallied 1.60%.

Commonwealth Bank of Australia (CBA) rose by 0.75%, with National Australia Bank Ltd. (NAB) gaining 0.33%. ANZ Group Holdings Ltd. (ANZ) and Westpac Banking Corp. (WBC) advanced by 0.29% and 0.27%, respectively.

Mining stocks had a mixed session. BHP Group Ltd (BHP) fell by 0.42% as investors reacted further to BHP’s plans to acquire Anglo American. However, Rio Tinto Ltd. (RIO) and Fortescue Metals Group Ltd. (FMG) ended the session up 0.10% and 0.31%, respectively.

Gold-related stocks also had a mixed session. Northern Star Resources Ltd. (NST) fell by 0.26%, while Evolution Mining Ltd (EVN) gained 1.73%.

Woodside Energy Group Ltd (WDS) and Santos Ltd (STO) declined by 0.25% and 0.78%, respectively.

Hang Seng Index

On Monday, the Hang Seng Index gained 0.54%, extending its winning streak to six sessions. Real estate stocks contributed to the gains. The Hang Seng Mainland Properties Index (HSMPI) rallied 3.65%. However, the Hang Seng Tech Index (HSTECH) fell by 0.13%.

Alibaba (9988) and Tencent (0700) declined by 1.26% and 0.23%, respectively.

However, Bank stocks had a positive Monday session. HSBC (0005) rose by 0.92%. China Construction Bank (0939) and Industrial Commercial Bank (1398) rallied 2.01% and 1.20%, respectively.

The Nikkei 225

(Graph for reference purposes only)

Japanese markets were closed on Monday (April 29) for Showa Day.

For upcoming economic events, refer to our economic calendar.