Hang Seng Index, ASX 200, Nikkei Index: April Private Sector PMIs in Focus

Bob Mason
Updated: Apr 22, 2024, 22:46 GMT+00:00

Key Points:

  • On Monday, the Hang Seng Index led the ASX 200 and the Nikkei into positive territory on easing geopolitical tensions.
  • Preliminary private sector PMI numbers for April will warrant investor attention on Tuesday.
  • Corporate earnings also need consideration, with China Mobile (HK: 0941) among the big names to release earnings results.
Hang Seng Index, ASX 200, Nikkei Index

In this article:

US Equity Markets:

On Monday, the Chicago Fed National Activity Index supported expectations of the US avoiding an economic recession. The Index rose from 0.09 to 0.15 in April. Easing geopolitical tensions and upbeat sentiment toward the US economy, despite sticky inflation and the elevated interest rate environment, drove buyer demand for riskier assets.

Sentiment toward corporate earnings also contributed to the gains as investors awaited earnings from the Magnificent Seven.

On Monday, the Nasdaq Composite Index advanced by 1.11%. The Dow and the S&P 500 saw gains of 0.67% and 0.87%, respectively.

The US equity market session will likely set the tone for the Tuesday Asian session.

Asian Economic Calendar: Private Sector PMIs in Focus

On Tuesday, preliminary private sector PMI numbers from Australia and Japan warrant investor attention. A pickup in private sector activity could influence the Bank of Japan and RBA interest rate trajectories.

Economists forecast the Australian Judo Bank Manufacturing PMI to increase from 47.3 to 47.9. However, economists forecast the Australian Judo Bank Services PMI to fall from 54.4 to 54.0.

Economists expect the Japanese Jibun Bank Services PMI to slip from 54.1 to 54.0 and the Japanese Jibun Bank Manufacturing PMI to fall from 48.2 to 48.0. The Jibun Bank Services PMI will likely impact the Nikkei more. The Bank of Japan hopes the services sector can fuel demand-driven inflation and enable further interest hikes.

Beyond the economic calendar, corporate earnings results also need consideration. China Mobile (HK0941) is on the earnings calendar to release earnings on Tuesday, April 23.

Commodities: Crude Oil, Gold, and Iron Ore

On Monday, WTI crude and gold (XAU/USD) prices declined. Risk-on-sentiment impacted buyer demand for gold. Easing geopolitical tensions in the Middle East pressured crude oil prices.

Iron ore declined by 0.05% on the Singapore Futures Exchange.

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

The USD/JPY gained 0.16% on Monday, ending the session at 154.846. The stronger USD/JPY supported buyer appetite for Nikkei-listed export stocks.

However, lingering threats of a Japanese government intervention capped the upside for the USD/JPY and the Nikkei.

The Futures Markets

On Tuesday, the ASX 200 and Nikkei were up 19 and 310 points, respectively.

ASX 200

ASX 200 ended the Monday session in positive territory.
ASX200 230424 Daily Chart

The ASX 200 advanced by 1.08% on Monday. Bank, mining, and tech stocks contributed to the gains. The S&P ASX All Technology Index (XTX) rallied 1.42%.

BHP Group Ltd (BHP) and Rio Tinto Ltd. (RIO) ended the session up 1.77% and 0.20%, respectively. Fortescue Metals Group Ltd. (FMG) gained 0.77%.

National Australia Bank Ltd. (NAB) rose by 1.03%. Commonwealth Bank of Australia (CBA) and Westpac Banking Corp. (WBC) advanced by 0.91% and 0.90%, respectively. ANZ Group Holdings Ltd. (ANZ) bucked the trend, falling by 0.07%.

However, gold-related stocks and oil stocks ended the session in negative territory over easing fears of a widespread Middle East conflict.

Gold stocks Northern Star Resources Ltd. (NST) and Evolution Mining Ltd (EVN) declined by 1.42% and 1.47%, respectively.

Woodside Energy Group Ltd (WDS) and Santos Ltd (STO) saw losses of 2.62% and 1.15%, respectively.

Hang Seng Index

The Hang Seng Index had a positive Monday session.
HSI 230424 Daily Chart

On Monday, the Hang Seng Index rallied 1.77%. Real estate and tech stocks reversed their losses from Friday. The Hang Seng Tech Index (HSTECH) advanced by 1.78%, with the Hang Seng Mainland Properties Index (HSMPI) gaining 1.41%.

Tencent (0700) surged 5.46% as investors reacted to news of an earlier-than-expected release of Dungeon and Fighter: Origin. Alibaba (9988) ended the session up 2.62%.

However, bank stocks had another mixed session. HSBC (0005) rallied by 2.51%, with China Construction Bank (0939) rising by 0.62%. Industrial Commercial Bank (1398) declined by 0.24%.

The Nikkei 225

Nikkei had a positive start to the week.
Nikkei 230424 Daily Chart

(Graph for reference purposes only)

The Nikkei ended the Monday session up 1.00%.

Bank stocks contributed to the gains. Sumitomo Mitsui Financial Group Inc. (8316) and Mitsubishi UFJ Financial Group Inc. (8306) advanced by 1.91% and 3.07%, respectively.

However, it was another mixed session for the main components of the Nikkei 225.

Fast Retailing Co. Ltd. (9983) and KDDI Corp. (9433) rallied 2.30% and 2.52%, respectively.

However, Tokyo Electron Ltd. (8035) slid by 3.22%, with Softbank Group Corp. (9948) declining by 1.79. Sony Group Corporation (6758) ended the session flat.

For upcoming economic events, refer to our economic calendar.

About the Author

Bob Masonauthor

With over 20 years of experience in the finance industry, Bob has been managing regional teams across Europe and Asia and focusing on analytics across both corporate and financial institutions. Currently he is covering developments relating to the financial markets, including currencies, commodities, alternative asset classes, and global equities.

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