Advertisement
Advertisement

Hang Seng Index, ASX200, Nikkei 225: Hang Seng Hit by China Stats

By:
Bob Mason
Published: Mar 27, 2023, 03:57 UTC

It was a mixed start to the week for the Asian markets. Industrial production figures from China weighed on the Hang Seng Index amidst easing bank jitters.

Asian equities are mixed after the Fed - FX Empire

In this article:

  • It was a mixed Monday morning for the Asian markets, with the Hang Seng Index struggling.
  • While Deutsche Bank jitters eased over the weekend, economic data from China weighed on the Hang Seng Index.
  • Banking sector woes limited the gains for the Nikkei 225 and the ASX 200.

Market Overview

It was a mixed morning for the Asian markets. The Hang Seng Index struggled, while the ASX 200 and the Nikkei 225 found modest support.

There were no adverse banking sector-related news reports to spook investors going into the Monday session. Easing fears of a Deutsche Bank (DB) collapse provided investor comfort, with assurances from lawmakers and regulators of financial stability also calming investors.

However, the threat of a credit crunch and a stronger dollar, coupled with the prospect of the fallout from the collapse of Silicon Valley Bank (SVIB) and Signature Bank (SBNY) reaching the Asian shores, capped the upside.

Economic data from China contribute to the cautious mood. Industrial profits tumbled 22.9% year-to-date in February versus a 4% decline in January. The numbers will question the optimistic outlook toward the post-zero COVID-policy Chinese economy.

With no US economic indicators for investors to fret about this morning, the Dow and NASDAQ mini provided comfort. The Dow and the NASDAQ were up 119 points and 30.5 points, respectively. However, crude oil prices were back in the red, with Brent Crude down 0.05% to $74.95.

ASX 200

Chart Description automatically generated

The ASX 200 was up 0.13%, with bank stocks providing support. However, mining and oil stocks were a drag. The numbers out of China tested buyer appetite.

It was a mixed morning for the big-4. National Australia Bank (NAB) rose by 0.59%, with ANZ Group (ANZ) and Westpac Banking Corp (WBC) seeing gains of 0.07% and 0.21%, respectively. The Commonwealth Bank of Australia (CBA) bucked the trend, falling by 0.50%.

Mining stocks struggled. Rio Tinto (RIO) and BHP Group Ltd (BHP) fell by 0.85% and 0.62%, respectively. However, Fortescue Metals Group (FMG) and Newcrest Mining (NCM) were up by 0.30% and 0.72%, respectively.

It was a bearish session for oil stocks. Woodside Energy Group (WDS) and Santos Ltd (STO) fell by 2.92% and 1.39%, respectively.

Hang Seng Index

Chart Description automatically generated

The Hang Seng was down 1.75% this morning. Economic data from China and fears of a credit crunch left investors to contend with a sea of red.

Considering the main components, Tencent Holdings Ltd (HK:0700) slid by 3.08%, with Alibaba Group Holding Ltd (HK:9988) falling by 0.94%.

It was a bearish morning for banking stocks. HSBC Holdings PLC declined by 1.05%, with China Construction Bank (HK: 0939) and Industrial and Commercial Bank of China (HK:1398) seeing losses of 0.99% and 1.18%, respectively.

CNOOC (HK: 0883) was down 1.23% in response to the latest pullback in crude oil prices.

Nikkei 225

Chart Description automatically generated

The Nikkei 225 was up 0.27% this morning, with the upside coming despite a weaker USD/JPY.

Sumitomo Mitsui Financial Group (8316) and Mitsubishi UFJ Financial Group fell by 1.19% and 0.57%, respectively.

Looking at the main components, KDDI Corp (9433) and Fast Retailing Co (9983) rose by 1.86% and 0.58%, respectively.

However, Sony Corp (6758) and Tokyo Electron (8035) saw losses of 1.21% and 2.24%, respectively. SoftBank Group Corp. (9984) fell by a more modest 0.34%.

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

About the Author

Bob Masonauthor

With over 20 years of experience in the finance industry, Bob has been managing regional teams across Europe and Asia and focusing on analytics across both corporate and financial institutions. Currently he is covering developments relating to the financial markets, including currencies, commodities, alternative asset classes, and global equities.

Did you find this article useful?

Advertisement