Hang Seng Index, ASX200, Nikkei 225: Hang Seng Tracks the US Futures
- It was a mixed morning for the Asian markets, with the Hang Seng enjoying a bullish start to the week.
- Regulatory responses to the collapse of Silicon Valley Bank (SVIB) delivered support to riskier assets, though concerns over the banking sector lingered.
- There were no economic indicators to draw interest, leaving investors to consider the US Jobs Report.
It was a mixed morning for the Asian markets. The Hang Seng Index responded favorably to the weekend moves by US regulators to prevent a global banking crisis. However, the collapses of Silvergate Bank, Silicon Valley Bank, and Signature Bank continued to cause alarm, with aggressive policy moves to curb inflation adversely impacting bank balance sheets.
Sentiment toward the banking sector overshadowed the more market-friendly US Jobs Report. Softer wage growth and a rise in the US unemployment rate eased bets of a hawkish Fed move. However, the threat of a 50-basis point Fed interest rate hike remains, with the US CPI Report and retail sales figures likely to affect the decision-making process.
There were no stats from the Asian region to influence the majors.
This morning, the NASDAQ mini was up 201 points, with the Dow mini jumping by 380 points.
The ASX 200 was down 0.13%. There were no economic indicators from Australia to influence, leaving bank stocks to send the Index into the red as investor jitters over the state of the banking sector lingered.
ANZ Group (ANZ) and Westpac Banking Corp (WBC) were down 1.26% and 0.94%, respectively. Commonwealth Bank of Australia (CBA) and National Australia Bank (NAB) saw losses of 0.13% and 0.94%, respectively.
Oil stocks found support, with Woodside Energy Group (WDS) and Santos Ltd (STO) seeing gains of 0.76% and 0.69%, respectively. Brent Crude was up 0.23% to $82.97 this morning to deliver support.
Mining stocks enjoyed a bullish session. Rio Tinto (RIO) and BHP Group Ltd (BHP) were up by 1.41% and 2.09%, respectively, with Fortescue Metals Group (FMG) up 1.63%. However, Newcrest Mining (NCM) led the way, rallying 3.73%.
Hang Seng Index
The Hang Seng was up 2.26% this morning as investors responded to the weekend moves by the US government to calm the markets.
Looking at the main components, Tencent Holdings Ltd (HK:0700) and Alibaba Group Holding Ltd (HK:9988) surged by 5.61% and 4.00%, respectively.
CNOOC (HK: 0883) also benefitted from the activity in the US, rallying 5.96%.
However, it was a mixed morning for banking stocks. HSBC Holdings PLC fell by 1.24%, while China Construction Bank (HK: 0939) and Industrial and Commercial Bank of China (HK:1398) rose by 1.64% and 2.71%, respectively.
The Nikkei 225 was down a relatively modest 0.06% this morning, with a weaker USD/JPY at sub-134 and bank stocks weighing. There were no economic indicators from Japan for investors to consider. Financial stocks left the Index in the red, with Sumitomo Mitsui Financial Group (8316) sliding by 8.33%.
Looking at the main components, it was a sea of red. SoftBank Group Corp. (9984) and KDDI Corp (9433) fell by 1.78% and 1.17%, respectively. Sony Corp (6758) and Tokyo Electron saw losses of 0.77% and 0.87%, respectively, with Fast Retailing Co (9983) down by 0.16%.
Check out our economic calendar for today’s economic events.