Hang Seng Index, ASX200, Nikkei 225: HSI Reopens after a Stormy Monday

Key Insights:

• It was a stormy Monday for the Asian equity markets, with Typhoon Talim forcing the HK Observatory to hoist the T8 storm signal.
• Economic indicators from China weighed on the ASX 200, while the markets in Japan were closed for Marine Day.
• It is a quiet day ahead for the Asian markets, with no economic indicators from the Asian region to influence market risk sentiment.

The Hang Seng Index and the broader Asian markets are set for a mixed opening this morning.

This morning, there are no economic indicators from Australia or China to influence market risk sentiment. The lack of economic indicators will leave Hang Seng and Nikkei investors to react to the China economic indicators from Monday.

Early in the Monday session, Q2 GDP, industrial production, fixed asset investment, and retail sales numbers from China garnered interest.

The Chinese economy expanded by 0.8% in the second quarter and by 6.3% year-over-year. Economists forecast the Chinese economy to grow by 7.3% year-over-year but by just 0.5% in the second quarter.

From overnight, NY Empire State Manufacturing Index numbers for July are unlikely to cause a stir. The NY Empire State Manufacturing Index fell from 6.60 to 1.10 in July versus a forecasted decline to -4.30.

The US equity markets had a bullish start to the week. The NASDAQ Composite Index gained 0.93%, with the Dow and the S&P 500 rising by 0.22% and 0.39%, respectively.

Investor hopes of better than forecast earnings results and favorable outlooks delivered Monday support.

Tesla (TSLA), Netflix (NFLX), Morgan Stanley (MS), Goldman Sachs (GS), and Bank of America (BAC) are among the big names to deliver this week. However, investor sentiment toward US corporate earnings may not be enough to provide a bullish Tuesday session for the Asian markets.

ASX 200

The ASX 200 slipped by 0.06% on Monday, with the stats from China weighing on mining stocks. This morning, the RBA meeting minutes will influence, with any hints of further rate hikes likely to test buyer appetite.

The big-4 had a mixed Monday session. The National Australia Bank (NAB) gained 0.74%, with ANZ Group (ANZ) and The Commonwealth Bank of Australia (CBA) ending the day up by 0.41% and 0.53%, respectively. Westpac Banking Corp (WBC) bucked the trend, falling by 0.14%.

Mining stocks had a bearish session. Rio Tinto (RIO) and BHP Group Ltd (BHP) ended the day with losses of 0.98% and 0.57%, respectively, with Fortescue Metals Group (FMG) falling by 1.32%. Newcrest Mining (NCM) also struggled, ending the day down 1.18%.

Oil stocks had a bearish session. Woodside Energy Group (WDS) and Santos Ltd (STO) ended the day with losses of 0.94% and 1.82%, respectively.

Hang Seng Index

The HK markets were closed on Monday, with Typhoon Talim shuttering the Hang Seng Index for the day. On Friday, the Hang Seng Index ended a five-day winning streak, falling 0.33%.

Considering the main Index components, Tencent Holdings Ltd (HK:0700) and Alibaba Group Holding Ltd (HK:9988) rose by 0.80% and 0.22%, respectively.

However, bank stocks had a mixed session. HSBC Holdings PLC and The Industrial and Commercial Bank of China (HK:1398) rose by 1.05% and 1.10%, respectively, while China Construction Bank (HK: 0939) ended the day flat.

CNOOC (HK: 0883) ended the day up 0.49%.

Nikkei 225

(For demonstrative purposes only)

The markets in Japan were closed on Monday for Marine Day. On Friday, the Nikkei 225 slipped by 0.09%, with the weaker USD/JPY a drag.

The banks had a bearish session. Sumitomo Mitsui Financial Group (8316) and Mitsubishi UFJ Financial Group fell by 0.10% and 0.38%, respectively.

Looking at the main components, Tokyo Electron Limited (8035) gained 1.76%, with KDDI Corp (9433) ending the day flat.

However, SoftBank Group Corp. (9984) and Fast Retailing Co (9983) saw losses of 2.01% and 2.09%, respectively, with Sony Corp (6758) ending the day down 1.08%.

Check out our economic calendar for economic events.