Hang Seng Index, ASX200, Nikkei 225: Hang Seng Leads the Recovery

• It was a bullish morning for the Asian markets, with the Hang Seng Index enjoying a breakout morning session.
• Receding jitters of a global financial crisis and easing bets of a hawkish 50-basis point Fed interest rate hike supported the demand for riskier assets.
• There were no economic indicators from the region to influence market risk sentiment.

Market Overview

It was a bullish morning for the Asian markets. The Hang Seng Index enjoyed a breakout session, with rising commodity prices supporting the ASX 200. A slide in the USD/JPY pair failed to weigh on the Nikkei 225, which benefitted from the shift in sentiment toward Fed monetary policy and bank contagion risk jitters.

Overnight gains across the US equity markets supported the bullish morning session. The NASDAQ Composite Index led the way, rising by 2.48%, with the Dow and S&P 500 seeing gains of 1.17% and 1.76%, respectively.

Receding Silicon Valley Bank (SIVB) and Signature Bank (SBNY) contagion risk supported the demand for riskier assets. Government and central bank assurances of containment were key to the bullish session. However, the softer US consumer and wholesale inflation and disappointing US retail sales eased bets of a 50-basis point Fed interest rate hike, adding further support to the riskier assets.

On Thursday, Credit Suisse Group (CS) surged by 19.15%, partially reversing a 24.24% slump from Wednesday. The Swiss National Bank (SNB) delivered support on assurances that the Central Bank would take measures to protect the beleaguered bank.

However, investors remained wary this morning, with Michigan Consumer Expectations and Year-ahead consumer inflation expectations in focus later today.

ASX 200

The ASX 200 was up 0.26%. Rising commodity prices and easing banking crisis jitters delivered morning support.

Bank stocks were on the rise. National Australia Bank (NAB) rose by 0.99%, with ANZ Group (ANZ) and Commonwealth Bank of Australia (CBA) seeing gains of 0.40% and 0.65%, respectively. Westpac Banking Corp (WBC) increased by a more modest 0.17%.

Mining stocks were also in the green. Rio Tinto (RIO) and BHP Group Ltd (BHP) rose by 0.54% and 0.29%, respectively, with Fortescue Metals Group (FMG) up 2.04%. However, Newcrest Mining (NCM) bucked the trend, falling by 1.47%.

Oil stocks found much-needed support as crude oil prices stabilized. Woodside Energy Group (WDS) and Santos Ltd (STO) were up by 2.20% and 1.47%, respectively.

Hang Seng Index

The Hang Seng was up 1.85% this morning.

Considering the main components, Tencent Holdings Ltd (HK:0700) and Alibaba Group Holding Ltd (HK:9988) rose by 2.56% and 1.99%, respectively.

However, it was a mixed morning for banking stocks. HSBC Holdings PLC fell by 0.83%, while Industrial and Commercial Bank of China (HK:1398) and China Construction Bank (HK: 0939) saw gains of 0.95% and 0.59%, respectively.

CNOOC (HK: 0883) rallied by 4.80%. This morning crude oil prices steadied, with Brent rising by 1.10% to $75.52.

Nikkei 225

The Nikkei 225 was up 0.80% this morning, with easing Fed Fear and receding risks of a global financial crisis providing support.

Sumitomo Mitsui Financial Group (8316) and Mitsubishi UFJ Financial Group fell by 0.72% and 0.10%, respectively.

Looking at the main components, it was a sea of green. Sony Corp (6758) rose by 2.71%, with Tokyo Electron (8035) up 1.55%. However, SoftBank Group Corp. (9984), Fast Retailing Co (9983), and KDDI Corp (9433) saw relatively modest gains. Fast Retailing rose by 0.34%, with Softbank and KDDI Corp seeing gains of 0.10% and 0.15%, respectively.

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