Hang Seng Index, ASX 200, Nikkei 225: Nikkei Futures Signal 580 Point Gain

Highlights

• The ASX 200 ended the Monday session in negative territory.
• On Tuesday, the futures point to a positive start for the ASX 200 and Nikkei.
• Central bank commentary, corporate earnings, and the Asian economic data also warrant investor attention.

Overview of the Monday Session

On Monday, the ASX 200 closed the session in negative territory, ending a three-day winning streak. There was no trading on the Hang Seng Index or Nikkei. The Hong Kong and Japan markets were closed for trading.

Fed commentary and the US equity market session from Friday set the tone for the Monday session. Dallas Federal Reserve Bank President Lorie Logan joined the chorus of Fed speakers calling for patience on interest rates. Logan said there was no pressing need to cut interest rates.

10-year US Treasury yields increased by 0.55%, ending the session at 4.177%. The US equity markets responded to the earnings and Fed commentary. On Friday, the Dow declined by 0.14%. The Nasdaq Composite Index and S&P 500 saw gains of 1.25% and 0.57%, respectively.

However, corporate earnings from the Asian region and company-related news influenced the Monday session. There were no stats to consider at the start of the week.

The Dow, Corporate Earnings, and Stats in Focus

On Tuesday, the US equity market session from Monday could set the tone for the session. The Dow gained 0.32%, while the Nasdaq Composite Index and S&P 500 fell by 0.30% and 0.09%, respectively. 10-year US Treasury yields rose by 0.10% to 4.181%.

However, corporate earnings and stats from Australia and Japan also need consideration. Producer price numbers from Japan could influence bets on a Bank of Japan pivot from negative rates. From Australia, consumer and business confidence numbers could move the dial.

On the earnings calendar, Commonwealth Bank (ASX 200) and Macquarie (ASX 200) are among the big names releasing earnings results.

On Tuesday, the ASX 200 and Nikkei futures were up 20 and 580 points. The Hong Kong markets are closed for the Chinese New Year and will reopen on Wednesday.

ASX 200

The ASX 200 declined by 0.39% on Monday. Tech sector stocks limited the losses, with the S&P ASX All Technology Index (XTX) gaining 1.10%. Nasdaq Composite Index gains from Friday drove buyer demand for Aussie tech stocks.

Investors also responded positively to ANZ Group Holdings Ltd’s (ANZ) earnings results. However, the healthcare sector dragged the Index into negative territory. CSL slid by 4.84% on news of a failed drug trial. The oil and mining sectors also pressured the ASX 200.

ANZ Group Holdings Ltd (ANZ) rallied 1.30%. National Australia Bank Ltd. (NAB) and Westpac Banking Corp. (WBC) ended the day up 0.87% and 0.53%, respectively. Commonwealth Bank of Australia (CBA) bucked the trend, falling by 0.44%.

BHP Group Ltd (BHP) and Rio Tinto Ltd. (RIO) fell by 0.50% and 0.72%, respectively. Fortescue Metals Group Ltd. (FMG) ended the day up 0.81%.

Woodside Energy Group Ltd (WDS) dragged the oil sector into negative territory, sliding by 2.17%. Santos Ltd (STO) gained 0.27%.

Gold (XAU/USD) stocks ended another session in negative territory.

Northern Star Resources Ltd. (NST) and Evolution Mining Ltd. ended the day down 0.69% and 0.98%, respectively.

Hang Seng Index

The Hang Seng Index was closed on Monday and will reopen on Wednesday.

The Nikkei 225

(Graph for reference purposes only)

The Nikkei was closed for trading on Monday.

For upcoming economic events, refer to our economic calendar.