Hang Seng Index, ASX200, Nikkei 225: Fed Uncertainty Limits Gains

• It was a bullish morning for the Asian markets, with the Hang Seng Index and ASX 200 in recovery mode.
• Easing fears of a banking crisis delivered support to riskier assets through the US session, spilling over to the Asian markets.
• There were no economic indicators to influence sentiment, while dovish RBA meeting minutes provided ASX 200 support.

Market Overview

It was a bullish morning for the Asian markets. The Hang Seng Index and ASX 200 found much-needed support. Easing fears of a global banking crisis supported demand for riskier assets following overnight gains in the US.

While the news of UBS AG (UBS) agreeing to acquire Credit Suisse Group AG (CS) was market-positive, investor sentiment toward the Fed also delivered support. In the wake of the Silicon Valley Bank (SIVB) and Signature Bank (SBNY) failings, investor bets of a 50-basis point Fed rate hike have subsided.

The markets expect the Fed to lift interest rates by 25 basis points tomorrow. Some are considering the possibility of a pause to assess the damage to the banking sector and the economy.

On Monday, the NASDAQ Composite Index rise by 0.39%, with the Dow and S&P 500 seeing gains of 1.20% and 0.89%, respectively.

Japan markets were closed today.

ASX 200

The ASX 200 was up 1.15%. Mining and bank stocks found much-needed support from easing bank crisis jitters and hopes of a pickup in demand from China. This morning, RBA meeting minutes revealed board members considered a rate pause, supporting the bullish session.

It was a bullish morning for the big-4, with Westpac Banking Corp (WBC) and ANZ Group (ANZ) seeing gains of 2.11% and 1.60%, respectively. Commonwealth Bank of Australia (CBA) and National Australia Bank (NAB) were up 1.06% and 1.11%, respectively.

Mining stocks were also in the green. Rio Tinto (RIO) and BHP Group Ltd (BHP) rose by 1.46% and 1.59%, respectively, with Fortescue Metals Group (FMG) up 0.79%. Newcrest Mining (NCM) gained 0.58%.

Oil stocks joined the broader market in the green. Woodside Energy Group (WDS) and Santos Ltd (STO) rose by 1.26% and 1.11%, respectively. While overnight gains in crude oil delivered morning support, crude oil prices were back in the red this morning, with Brent Crude down 0.99% to $73.06.

Hang Seng Index

The Hang Seng was up a modest 0.36% this morning. While the fear of a global banking crisis abated, Fed Fear pegged the Index back.

Considering the main components, Tencent Holdings Ltd (HK:0700) and Alibaba Group Holding Ltd (HK:9988) fell by 0.54% and 0.51%, respectively.

It was a mixed morning for banking stocks. HSBC Holdings PLC was up 1.59%, while Industrial and Commercial Bank of China (HK:1398) and China Construction Bank (HK: 0939) saw losses of 0.95% and 0.79%, respectively.

CNOOC (HK: 0883) declined by 1.24%, with falling Crude oil prices weighing.

Nikkei 225

Japan markets were closed today.

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