Hang Seng Index, ASX200, Nikkei 225: Fast Retailing Surges on Earnings

• It was a mixed Friday morning for the Asian markets, with the Hang Seng Index struggling.
• Fast Retailing delivered a Nikkei boost, with the ASX 200 tracking the Dow Jones into positive territory.
• A lack of regional economic indicators left investors to digest the latest round of US inflation and labor market-related stats.

Market Overview

It was a mixed morning for the Asian markets. The Hang Seng Index struggled, while the ASX 200 and Nikkei were in positive territory.

US economic indicators from Thursday delivered support to riskier assets. An unexpected fall in the US Producer Price Index and a larger-than-forecast increase in the weekly initial jobless claims supported bets of the Fed nearing the end of its monetary policy tightening cycle.

The US producer price index fell by 0.5% in March versus a forecasted 0.1% increase. Also bullish was a larger-than-expected rise in US initial jobless claims. Claims increased from 228k to 239k versus a forecasted 232k.

Considering the US CPI Report, the numbers supported investor expectations of the Fed reaching its peak in the monetary policy tightening cycle.

The NASDAQ Composite Index responded to the stats, rallying 1.99%, with the S&P 500 and Dow seeing gains of 1.33% and 1.14%, respectively.

This morning, investors also responded to the Monetary Authority of Singapore hitting the pause button.

After the US inflation numbers, bets of a 25-basis point Fed interest rate hike in May have stayed steady. However, the chances of a post-May hike are almost zero. According to FedWatchTool, the probability of a 25-basis point interest rate hike in May fell from 70.4% to 66.8% over 24 hours.

This afternoon, US retail sales figures could deliver another blow to the Fed hawks, with soft numbers likely to affirm a May end to the Fed rate hike cycle.

After the bullish Thursday session, the US futures sent bearish signals. The NASDAQ min and S&P 500 were down 14 points and 1.75 points, respectively. The Dow was down by 51. While the US economic indicators will influence, investors must respond to the start of the US earnings season.

Blackrock (BLK), Citi (C), JPMorgan (JPM), and Wells Fargo (WFC) deliver earnings results ahead of the US opening bell. Beyond the earnings numbers, references to the banking crisis will draw interest.

ASX 200

The ASX 200 was up 0.39%, with bank stocks delivering support. There were no stats from Australia to influence.

The big-4 had a bullish morning. ANZ Group (ANZ) and Westpac Banking Corp (WBC) saw gains of 0.59% and 0.63%, respectively. However, the Commonwealth Bank of Australia (CBA) and National Australia Bank (NAB) led the way, rising by 0.75% and 0.96%, respectively.

Oil stocks had a bullish morning. Woodside Energy Group (WDS) and Santos Ltd (STO) were up by 0.20% and 0.76%, respectively. Brent Crude was up 0.41% to $86.44 this morning.

However, mining stocks had a mixed morning. Rio Tinto (RIO) and BHP Group Ltd (BHP) were down by 0.23% and 0.71%, respectively, while Fortescue Metals Group (FMG) rose by 0.47%. Newcrest Mining (NCM) was up by 1.75%.

Hang Seng Index

The Hang Seng was down 0.07% this morning.

Considering the main components, Tencent Holdings Ltd (HK:0700) and Alibaba Group Holding Ltd (HK:9988) were down by 0.77% and 0.27%, respectively.

However, it was a mixed morning for banking stocks. HSBC Holdings PLC rose by 0.72%, while the Industrial and Commercial Bank of China (HK:1398) and China Construction Bank (HK: 0939) were flat.

CNOOC (HK: 0883) was up by 0.64%.

Nikkei 225

The Nikkei 225 was up 0.28% this morning, despite a weaker USD/JPY, Fast Retailing Co (9983) earnings delivered a bullish session.

Bank stocks found support, with Sumitomo Mitsui Financial Group (8316) and Mitsubishi UFJ Financial Group seeing gains of 0.52% and 0.14%, respectively.

Looking at the main components, Fast Retailing Co (9983) led the way, surging by 9.02%. KDDI Corp (9433) and Sony Corp (6758) were up by 0.22% and 1.05%, respectively.

However, Tokyo Electron Limited (8035) and SoftBank Group Corp. (9984) saw losses of 1.69% and 0.23%, respectively.

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