Hang Seng Index, ASX200, Nikkei 225: GDP Stats Deliver Nikkei Support

Key Insights:

• It was another mixed morning, with Nikkei enjoying a breakout session while the Hang Seng Index and the ASX 200 struggled.
• Economic indicators from the US and Australia weighed on the ASX 200, while Q1 GDP figures from Japan delivered Nikkei support.
• However, investors remained cautious ahead of US debt ceiling talks resuming today.

Market Overview

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

Economic indicators from the US weighed on market risk sentiment, with April retail sales below consensus. Retail sales increased by 0.4% in April versus a forecasted 0.8% rise. In March, retail sales fell by 0.7%. The lackluster increase in retail sales leaves the threat of a US recession on the table.

However, a lack of progress toward a US debt ceiling deal added to the bearish mood.

On Tuesday, the NASDAQ Composite Index fell by 0.18%, with the Dow and S&P 500 seeing losses of 1.01% and 0.64%, respectively.

Economic indicators from the Asian region delivered mixed results this morning. A pickup in Australian wage growth will likely keep pressure on the RBA, while GDP numbers from Japan provided Nikkei support.

ASX 200

The ASX 200 was down 0.50%, with wage growth numbers raising bets of further RBA policy moves to bring inflation to target.

The big-4 had a bearish morning. Westpac Banking Corp (WBC) was down 1.23%, with The Commonwealth Bank of Australia (CBA) and the National Australia Bank (NAB) seeing losses of 0.87% and 0.77%, respectively. ANZ Group (ANZ) also struggled, falling by 0.64%.

Mining stocks had a mixed morning. Rio Tinto (RIO) and BHP Group Ltd (BHP) fell by 0.10% and 0.54%, respectively, while Fortescue Metals Group (FMG) was up by 0.05%. Newcrest Mining (NCM) was down 1.83%.

Oil stocks also had a mixed morning. Woodside Energy Group (WDS) rose by 0.09%, while Santos Ltd (STO) fell by 0.21%. Brent Crude was up 0.24% to $75.09 this morning.

Hang Seng Index

This morning, the Hang Seng was down 0.22%, with recessionary fears and caution over US debt ceiling talks weighing.

Considering the main components, Tencent Holdings Ltd (HK:0700) and Alibaba Group Holding Ltd (HK:9988) saw gains of 0.93% and 1.63%, respectively.

Bank stocks had a mixed morning session. HSBC Holdings PLC fell by 0.84%, while the Industrial and Commercial Bank of China (HK:1398) gained 0.68%. China Construction Bank (HK: 0939) was flat for the session.

CNOOC (HK: 0883) was down 1.39%.

Nikkei 225

The Nikkei 225 rose by 0.67% this morning, with Q1 GDP numbers delivering support. In Q1, the Japanese economy expanded by 1.6% year-over-year versus a forecasted 0.7%.

Sumitomo Mitsui Financial Group (8316) fell by 0.52%, while Mitsubishi UFJ Financial Group rose by 1.75% off the back of a bullish outlook for the fiscal year ending March 2024.

Considering the main components, Tokyo Electron Limited (8035) and SoftBank Group Corp. (9984) led the way, gaining 3.56% and 3.74%, respectively. Fast Retailing Co (9983) and Sony Corp (6758) were up by 1.43% and 0.47%, respectively, while KDDI Corp (9433) slipped by 0.07%

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