Hang Seng Index, ASX200, Nikkei 225: Hang Seng Bucks a Bearish Trend

• It was a mixed Tuesday morning, with the ASX 200 and the Nikkei seeing red while the Hang Seng Index found modest support.
• China’s private sector PMI numbers from Sunday continued to resonate, dashing hopes of a robust economic recovery.
• Fed Fear also weighed as investors awaited the RBA monetary policy decisions.

Market Overview

It was a mixed Tuesday morning for the Asian markets. The Hang Seng Index found modest support, while the ASX 200 and the Nikkei saw red.

US economic indicators from overnight and a bearish US equity market session weighed on investor sentiment.

In April, the ISM Manufacturing PMI rose from 46.3 to 47.1. The key takeaways from the ISM survey included sharp increases in the employment and prices sub-components. The ISM Manufacturing Employment Index jumped from 46.9 to 50.2, with the Prices Index up from 49.2 to 53.2.

The latest US stats supported a more hawkish Fed monetary policy outlook. According to the CME FedWatch Tool, the probability of a 25-basis point May interest rate hike rose from 83.9% to 93.2% in 24 hours. Significantly, the chances of a 25-basis point June interest rate hike increased from 23.9% to 27.7%.

However, the news of JPMorgan Chase (JPM) acquiring First Republic Bank’s (FRC) assets eased pressure on bank stocks.

On Monday, the NASDAQ Composite Index fell by 0.11%, with the Dow and S&P 500 seeing losses of 0.14% and 0.04%, respectively. This morning, the NASDAQ mini was down 7.5 points, with the Dow falling by 6.

ASX 200

The ASX 200 was down 0.14%, with recessionary jitters weighing on mining and oil stocks. There were no significant movements, with investors focused on the RBA monetary policy decision.

The big-4 had a bullish morning. ANZ Group (ANZ) and the National Australia Bank (NAB) were up 0.04% and 0.17%, respectively. However, Westpac Banking Corp (WBC) and The Commonwealth Bank of Australia (CBA) led the way, rising by 0.28% and 0.38%, respectively.

Mining stocks had a bearish morning. Rio Tinto (RIO) and BHP Group Ltd (BHP) fell by 0.85% and 0.91%, respectively, with Fortescue Metals Group (FMG) seeing a 0.33% loss. Newcrest Mining (NCM) was up 0.60%.

Oil stocks also struggled. Woodside Energy Group (WDS) and Santos Ltd (STO) were down by 1.05% and 0.97%, respectively. Brent Crude was up 0.23% to $79.49 this morning.

Hang Seng Index

This morning, the Hang Seng was up 0.12%. There were no economic indicators to influence, leaving Fed Fear and recessionary jitters to peg back the Index.

Considering the main components, Tencent Holdings Ltd (HK:0700) and Alibaba Group Holding Ltd (HK:9988) were up by 0.52% and 0.67%, respectively.

However, it was a mixed session for bank stocks. HSBC Holdings PLC gained 1.07%, while the Industrial and Commercial Bank of China (HK:1398) was flat for the session. China Construction Bank (HK: 0939) fell by 0.57%.

CNOOC (HK: 0883) was down 0.62%.

Nikkei 225

The Nikkei 225 was down 0.46% this morning, the downside coming despite the stronger USD/JPY.

Sumitomo Mitsui Financial Group (8316) and Mitsubishi UFJ Financial Group saw losses of 1.11% and 1.28%, respectively.

Looking at the main components, Tokyo Electron Limited (8035) bucked the trend, rising by 1.23%.

However, Sony Corp (6758) and SoftBank Group Corp. (9984) fell by 0.44% and 0.39%, respectively. KDDI Corp (9433) and Fast Retailing Co (9983) saw modest losses of 0.02% and 0.06%, respectively.

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