Hang Seng Index, ASX 200, Nikkei 225: The RBA and Aussie Stats Put the ASX 200 in Focus

Highlights

• On Monday, the Nikkei recovered from the Friday tumble, with the ASX 200 ending the day in positive territory. However, the Hang Seng Index struggled.
• The US Jobs Report and US Consumer Confidence influenced sentiment while China’s economic troubles resonated.
• On Tuesday, the RBA and Australian business and consumer confidence are focal points.

Overview of the Monday Session

On Monday, the Asian equity markets had a mixed session. The Nikkei 225 rebounded from the Friday slide, with the ASX 200 ending the session in positive territory. However, the Hang Seng Index extended its losing streak to three sessions.

The US Jobs Report and the Michigan Consumer Sentiment numbers supported the appetite for riskier assets. On Friday, the Dow and S&P 500 gained 0.36% and 0.41%, respectively. The Nasdaq Composite Index ended the session up 0.45%.

However, China’s deflation woes impacted the Hang Seng Index. Producer prices fell at a more marked pace in November, with consumer prices also seeing a sharper decline. The figures heightened the risk of a material narrowing in margins and corporate earnings amidst a weak demand environment.

While the ASX 200 saw modest gains, a stronger USD/JPY and BSI Large Manufacturing numbers triggered a Nikkei rally.

US Equity Markets to Influence Sentiment Ahead of the Fed

On Tuesday, US Consumer Inflation Expectation numbers from Monday could influence the Asian session. A softer-than-expected rise in consumer inflation expectations came before the US CPI Report on Tuesday.

The US equity markets responded to the figures. On Monday, the Nasdaq Composite Index gained 0.20%, with the Dow and S&P500 ending the day up 0.43% and 0.39%.

While the US equity markets will set the tone, the Asian economic calendar also warrants investor attention.

Australian business and consumer confidence figures could influence the ASX 200. Ahead of the opening bell, RBA Governor Michele Bullock is also on the calendar to speak.

Away from the economic calendar, stimulus chatter from Beijing needs monitoring.

In the futures market, the ASX 200 and Nikkei were up 13 and 330 points on Tuesday.

ASX 200

The ASX 200 gained 0.06% on Monday. Tech stocks ended the session flat, with gold stocks a drag. However, Mining, oil, and bank stocks contributed to the upside.

Oil stocks had a positive session. Woodside Energy Group Ltd (WDS) and Santos Ltd (STO) ended the day up 1.51% and 0.55%. Woodside and Santos merger chatter continued to draw investor interest.

National Australia Bank Ltd. (NAB) and Commonwealth Bank of Australia (CBA) saw gains of 0.34% and 0.47%. Westpac Banking Corp. (WBC) rose by 0.09%, while ANZ Group Holdings Ltd (ANZ) ended the session flat.

Mining stocks also had a mixed session. BHP Group Ltd (BHP) declined by 0.42%. Rio Tinto Ltd. (RIO) and Fortescue Metals Group Ltd. (FMG) gained 0.01% and 0.74%.

Gold (XAU/USD) stocks had a mixed. Northern Star Resources Ltd. (NST) declined by 2.06%, while Evolution Mining Ltd. (EVN) ended the session flat.

Hang Seng Index

The Hang Seng Index fell by 0.81% on Monday.

Alibaba (9988) slid by 2.41%, while Tencent (0700) gained 0.52%

Bank stocks also had a mixed session. HSBC (0005) increased by 0.50%. However, China Construction Bank (0939) and Industrial Commercial Bank (1398) fell by 0.23% and 0.55%.

The Nikkei 225

(Graph for reference purposes only)

The Nikkei 225 rallied 1.50% on Monday.

Bank stocks made gains for the fourth session. Sumitomo Mitsui Financial Group Inc. (8316) and Mitsubishi UFJ Financial Group Inc. (8306) rose by 1.71% and 1.87%. However, it was a mixed session for the main components of the Nikkei.

Tokyo Electron Ltd. (8035) rallied 3.44%. Sony Group Corp. (6758) and Softbank Group Corp. (9948) gained 1.92% and 1.98%. Fast Retailing Co. Ltd. (9983) ended the day up 0.85%, while KDDI Corp. (9433) slipped by 0.02%.

For upcoming economic events, check out our economic calendar.