Hang Seng Index, ASX 200, Nikkei 225 Index: Geopolitical Tensions and US Jobs Report to Influence

Key Insights:

• Asian markets showed mixed results on Friday: Hang Seng and ASX rose while Nikkei dipped.
• Rumors of BoJ policy adjustments influenced the Nikkei.
• US Jobs Report and geopolitical tensions to dictate the market tone on Monday.

Overview of the Friday Session

On Friday, the Asian equity markets had a mixed session. The Hang Seng Index and ASX 200 made further gains, while the Nikkei ended the session in negative territory.

US jobless claims figures on Thursday failed to spook investors despite an increase of just 2k to 207k. US 10-year Treasury yields initially spiked in response to the numbers before easing back. The retreat in yields limited the losses across the US equity markets as investors awaited the US Jobs Report.

On Thursday, the NASDAQ Composite and the S&P 500 fell by 0.12% and 0.13%, with the Dow declining by 0.03%.

The overnight moves across the US equity markets kickstarted a cautious start to the Friday session. Investors were likely mindful of the implications of the US Jobs Report on the Fed rate path and its impact on the markets.

Household spending figures from Japan and sentiment toward Bank of Japan policy goals weighed on the Nikkei. On Thursday, there was speculation of a possible tweak to the Bank of Japan’s (BoJ) Yield Curve Control Policy and forward guidance.

Household spending surged by 3.9% in August, reversing a 2.7% slide from July. Economists forecast household spending to increase by 0.9%.

The Monday Session: US Jobs Report Reaction

The US Jobs Report from Friday will set the tone for the Monday session. While a jump in nonfarm payrolls surprised investors, softer wage growth and a steady unemployment rate provided relief.

The NASDAQ Composite Index rallied 1.60%, with the S&P 500 and Dow gaining 1.18% and 0.87%, respectively.

While gains from the US markets will likely provide support, the Chinese markets will reopen after Golden Week. Investors may respond favorably to consumer spending reports from the week.

In the Futures Markets, the ASX 200 was up by 19 points and the Nikkei 225 by 310 points. However, rising geopolitical tensions may fuel a sell-off. The Dow mini was down 210 points this morning.

ASX 200

The ASX 200 rose by 0.41% on Friday. The S&P/ASX All Technology Index (XTX) ended the session down 0.06%. However, mining stocks and the big four banks contributed to the positive session.

Westpac Banking Corp (WBC) gained 2.05%, with the National Australia Bank (NAB) rising by 1.51%. The Commonwealth Bank of Australia (CBA) and ANZ Group (ANZ) ended the day up 1.07% and 0.92%, respectively.

Rio Tinto (RIO) and BHP Group Ltd (BHP) rose by 1.14% and 1.24%, with Fortescue Metals Group (FMG) gaining 1.35%. Newcrest Mining (NCM) slipped by 0.08%.

Woodside Energy Group (WDS) and Santos Ltd (STO) saw losses of 0.35% and 0.94%, respectively.

Hang Seng Index

The Hang Seng Index rose by 1.58% on Friday. On Friday, the Hang Seng Mainland Properties Index (HSMPI) gained 1.84%, contributing to the positive session. The news of Sunac China receiving court approval to restructure debt obligations provided investor relief. Sunac China (HK: 1918) ended the Friday session up 10.05%.

Alibaba Group Holding Ltd (HK:9988) and Tencent Holdings Ltd (HK:0700) ended the session up 1.91% and 1.80%.

Bank stocks had a positive session. China Construction Bank (HK:0939) rallied 2.11%. HSBC Holdings PLC (HK:0005) and the Industrial and Commercial Bank of China (HK:1398) gained 1.80% and 1.67%, respectively.

Nikkei 225

(Graph for reference purposes only)

The Nikkei 225 declined by 0.26% on Friday.

Bank stocks struggled. Sumitomo Mitsui Financial Group (8316) and Mitsubishi UFJ Financial Group fell by 0.46% and 1.27%. The main components of the Nikkei also ended the session in negative territory.

Tokyo Electron Limited (8035) declined by 1.59%. Fast Retailing Co (9983) and Sony Corp. (6758) saw losses of 0.63% and 0.49%, respectively.

KDDI Corp. (9433) and SoftBank Group Corp. (9984) fell by 0.22% and 0.05%.

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