Hang Seng Index, ASX200, Nikkei 225: China Caixin PMI Sends HSI South

• It was a mixed Monday morning for the Asian markets, with the Hang Seng Index seeing red while the ASX 200 and Nikkei 225 enjoyed a bullish session.
• Economic indicators from China weighed on the Hang Seng Index, while bank and crude oil stocks supported a bullish ASX 200.
• US Futures also weighed, with the NASDAQ mini and the Dow Mini seeing red this morning.

Market Overview

It was a mixed morning for the Asian markets. The Hang Seng Index struggled, while the Nikkei and ASX 200 made modest gains.

Economic data from China tested investor appetite for riskier assets. In March, the all-important Caixin Manufacturing PMI fell from 51.6 to 50.0. Economists forecast an increase to 51.7. Weak overseas demand contributed to the slide at the end of Q1.

The weaker-than-expected PMI weighed on mining stocks. However, crude oil stocks rallied as investors responded to the unexpected OPEC decision to cut output. This morning, Brent Crude was up 5.31% to $84.13, with WTI Crude up 5.46% to $79.80.

ASX 200

The ASX 200 was up 0.75%, with bank and oil stocks delivering support.

Economic indicators from Australia had a limited impact on the ASX 200. The housing sector, manufacturing sector, and retail sales figures were in focus. The stats came in better than expected. Significantly, retail sales rose by 0.2% versus a 0.1% prelim in March. In February, retail sales jumped by 1.8%.

Easing banking sector jitters supported the Big-4. The Commonwealth Bank of Australia (CBA) and ANZ Group (ANZ) led the way, rising by 1.51% and 1.96%, respectively. Westpac Banking Corp (WBC) gained 1.22%, with National Australia Bank (NAB) up 0.65%.

Oil stocks responded to the OPEC move. Woodside Energy Group (WDS) and Santos Ltd (STO) saw gains of 3.55% and 3.26%, respectively.

However, mining stocks struggled. Rio Tinto (RIO) and BHP Group Ltd (BHP) were down by 0.97% and 1.12%, respectively, with Fortescue Metals Group (FMG) falling by 1.69%. Newcrest Mining (NCM) saw a 1.71% loss.

Hang Seng Index

The Hang Seng was down 0.16% this morning, with the China Caixin Manufacturing PMI weighing.

Considering the main components, Tencent Holdings Ltd (HK:0700) was up 0.88%, while Alibaba Group Holding Ltd (HK:9988) fell by 1.34%.

It was also a mixed morning for banking stocks. HSBC Holdings PLC rose by 0.09%, while the Industrial and Commercial Bank of China (HK:1398) and China Construction Bank (HK: 0939) fell by 0.72% and 0.59%, respectively.

CNOOC (HK: 0883) jumped by 4.29%.

Nikkei 225

The Nikkei 225 was up 0.39% this morning, with a stronger USD/JPY delivering support. It was also a busy morning on the economic data front. Tankan survey numbers for Q1 were in focus.

The Tankan Large Non-Manufacturers Index increased from 19 to 20 in Q1 versus a forecasted 20. However, a 3.2% increase in the All Big Industry CAPEX failed to impress. Economists forecast a 4.9% rise after a 19.2% surge in Q4.

The Tankan Large Manufacturers Index fell from 7 to 1, with the Big Manufacturing Outlook Index falling from 6 to 3 in Q1. Economists forecast declines to 3 and 4, respectively.

Today’s Q1 numbers and the China Caixin Manufacturing PMI reflected manufacturing sector woes amidst weak demand.

Looking at the main components, Fast Retailing Co (9983) led the way, gaining 1.85%, with SoftBank Group Corp. (9984) rising by 0.83%.

Sony Corp (6758) and KDDI Corp (9433) also avoided the red, with gains of 0.08% and 0.07%, respectively, while Tokyo Electron Limited (8035) fell by 2.28%.

Bank stocks found support. Sumitomo Mitsui Financial Group (8316) and Mitsubishi UFJ Financial Group rose by 1.28% and 0.78%, respectively.

Check out our economic calendar for today’s economic events.