Hang Seng Index, ASX 200, Nikkei 225: Nikkei Futures Up Ahead of Producer Prices

Highlights

• The Hang Seng Index and ASX 200 ended the Monday session in negative territory while the Nikkei continued to climb higher.
• Asian economic indicators, geopolitics, and the PBoC impacted the appetite for ASX-200 and Hang Seng-listed stocks.
• On Tuesday, economic indicators from Australia and Japan, the Bank of Japan, and Beijing stimulus chatter will draw investor attention.

Overview of the Monday Session

On Monday, the Nikkei bucked the market trend, making further gains. However, the ASX 200 and Hang Seng Index saw more losses.

Softer US producer prices and rising bets on a March Fed rate cut influenced market sentiment on Monday. However, US bank earnings results and a mixed Friday session across the US equity market set the tone for the Asian Monday session.

On Friday, the Dow declined by 0.31%. The Nasdaq Composite Index and S&P 500 saw gains of 0.02% and 0.08%, respectively.

The Asian economic calendar influenced investor sentiment toward riskier assets. On Monday, the PBoC left the Medium-Term lending rate at 2.5%, dashing hopes of stimulus before Wednesday’s stats. Labor market figures from Australia were disappointing. ANZ-Indeed Job Ads rose by 0.1% in December after sliding by 5.1% in November. Economists forecast a 1.5% increase in Job Ads.

US Futures and the Asian Economic Calendar to Set the Tone for Tuesday

The US markets were closed on Monday for Martin Luther King Jr Day. The US futures will influence the appetite for riskier assets during the Asian session.

However, the Asian economic calendar could have more impact. Westpac Consumer Confidence and housing sector figures from Australia will influence buyer appetite for ASAX 200 consumer-linked stocks.

Economists forecast the Westpac Consumer Confidence Index to increase by 0.5% to 82.5 in January. The Westpac Consumer Confidence Index climbed by 2.7% to 82.1 in December.

Producer price numbers from Japan also need consideration for the Nikkei. The markets reduced bets on a Bank of Japan pivot. Economists forecast producer prices to decline by 0.3% year-over-year in December. Producer prices increased by 0.3% in November.

Beyond the numbers, investors must monitor geopolitical tensions, Bank of Japan commentary, and Stimulus chatter from Beijing.

In the futures markets, the ASX 200 was down 20 points, while the Nikkei was up 160 points. The Dow Jones mini was down 19 points, while the Nasdaq mini was up 0.75 points.

ASX 200

The ASX 200 fell by 0.03% on Monday. Gold, oil, and bank stocks made gains. Tech stocks also cushioned the downside, with the S&P ASX All Technology Index (XTX) rising by 0.09%. However, mining stocks dragged the Index into negative territory.

Gold (XAU/USD) and oil stocks ended the Monday session in positive territory.

Northern Star Resources Ltd. (NST) and Evolution Mining Ltd. (EVN) saw gains of 0.54% and 1.04%, respectively.

Woodside Energy Group Ltd (WDS) and Santos Ltd (STO) rose by 1.09% and 3.71%, respectively. Airstrikes in the Middle East drove demand for oil stocks. However, news of a Federal Court dismissing attempts to block Santos from laying a pipeline contributed.

Bank stocks ended the session with relatively modest gains. Westpac Banking Corp. (WBC) and ANZ Group Holdings Ltd (ANZ) ended the day up 0.43% and 0.19%, respectively. National Australia Bank Ltd. (NAB) and Commonwealth Bank of Australia (CBA) rose by 0.13% and 0.03%, respectively.

However, the recent pullback in iron ore prices continued impacting mining stocks. Fortescue Metals Group Ltd. (FMG) and Rio Tinto Ltd. (RIO) saw losses of 0.47% and 0.64%. BHP Group Ltd (BHP) slid by 1.11%. It is worth noting that Rio Tinto Ltd will release its Fourth Quarter Operational Review today.

Hang Seng Index

The Hang Seng Index ended the Monday session down 0.17%. The Hang Seng Tech Index (HSTECH) slid by 1.92%. Property stocks also saw losses. The Hang Seng Mainland Properties Index (HSMPI) declined by 1.32%.

Alibaba (9988) declined by 0.78%, while Tencent (0700) rose by 0.35%.

Bank stocks had another mixed session. HSBC (0005) and China Construction Bank (0939) declined by 0.89% and 0.44%, respectively. Industrial Commercial Bank (1398) ended the day up 0.27%.

The Nikkei 225

(Graph for reference purposes only)

The Nikkei gained 0.91% on Monday, ending the session at 35,902.

Bank stocks enjoyed a positive start to the week. Sumitomo Mitsui Financial Group Inc. (8316) and Mitsubishi UFJ Financial Group Inc. (8306) rallied 2.98% and 2.05%, respectively.

However, it was a mixed session for the main components of the Nikkei. Fast Retailing Co. Ltd. (9983) and KDDI Corp. (9433) saw gains of 1.81% and 1.36%, respectively.

Sony Group Corp. (6758) and Softbank Group Corp. (9948) declined by 0.38% and 0.28%, respectively. Tokyo Electron Ltd. (8035) slipped by 0.02%.

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