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Hang Seng Index, ASX200, Nikkei 225: Jobless Claims Eased Fed Fear

By:
Bob Mason
Published: Jun 9, 2023, 04:15 UTC

It was a bullish morning session for the Hang Seng and broader Asian markets, with investors brushing aside inflation numbers from China.

Hang Seng Index trails on easing Fed jitters - FX Empire

In this article:

Key Insights:

  • It was a bullish morning, with the Nikkei and the ASX 200 leading the Hang Seng Index.
  • Economic indicators from the US eased bets on a June interest rate hike, supporting riskier assets.
  • Inflation numbers from China failed to reverse early gains despite the Producer Price Index falling at a more marked pace in May.

Market Overview

It was a bullish Friday morning session for the Asian markets. The Nikkei and ASX200 led the Hang Seng Index, with the Asian markets tracking the US equity markets into positive territory.

US jobless claims numbers from Thursday eased bets on a June Fed interest rate hike, driving demand for riskier assets. US initial jobless claims increased from 233k to 261k. There was increased sensitivity to the latest claims figures following the unexpected rise in US unemployment.

According to the CME FedWatch Tool, the probability of a 25-basis point June interest rate hike fell from 33.8% to 27.5% in response to the jobless claims numbers. However, investors had mixed views on a July hike, with the chance of a 25-basis point hike sitting at 52.3%.

On Thursday, the NASDAQ Composite Index gained 1.02%, with the Dow and S&P 500 ending the day up 0.50% and 0.62%, respectively.

This morning, economic data from China failed to spook investors despite a more marked fall in the Producer Price Index.

The annual inflation rate picked up from 0.1% to 0.2% in May versus a forecasted 0.4%. Inflation remained soft, with consumer prices falling by 0.2%. In April, consumer prices declined by 0.1%.

However, the Producer Price Index garnered more interest, falling by 4.6% year-over-year versus 3.6% in April. Economists forecast the Producer Price Index to decline by a more modest 2.8%.

ASX 200

ASX 200 makes a move.
ASX 200 090623 Daily Chart

The ASX 200 was up 0.41%, with mining and bank stocks providing support.

The big-4 had a bullish morning. ANZ Group (ANZ) rose by 0.71%, with Westpac Banking Corp (WBC) and The National Australia Bank (NAB) seeing gains of 0.45% and 0.42%, respectively. The Commonwealth Bank of Australia (CBA) was up 0.18%.

Mining stock also made solid gains. Rio Tinto (RIO) and BHP Group Ltd (BHP) were up 0.69% and 1.09%, respectively, with Fortescue Metals Group (FMG) rising by 1.22%. However, Newcrest Mining (NCM) was down 0.11%.

However, oil stocks struggled. Woodside Energy Group (WDS) and Santos Ltd (STO) fell by 0.34% and 0.54%, respectively. Brent Crude was down 0.53% to $75.56 this morning.

Hang Seng Index

Hang Seng Index finds support.
HSI 090623 Daily Chart

The Hang Seng was up 0.17% this morning.

Considering the main components, Tencent Holdings Ltd (HK:0700) and Alibaba Group Holding Ltd (HK:9988) saw gains of 0.18% and 0.12%, respectively.

However, bank stocks had a mixed morning session. HSBC Holdings PLC and China Construction Bank (HK: 0939) were flat, while the Industrial and Commercial Bank of China (HK:1398) gained 0.46%.

CNOOC (HK: 0883) rose by 0.68%.

Nikkei 225

Nikkei leads the way.
Nikkei 225 090623 Daily Chart

The Nikkei 225 was up 0.89% this morning.

Sumitomo Mitsui Financial Group (8316) and Mitsubishi UFJ Financial Group rose by 0.60% and 0.63%, respectively.

Looking at the main components, Fast Retailing Co (9983) rallied 3.85%, with Sony Corp (6758) and KDDI Corp (9433) seeing gains of 1.79% and 1.59%, respectively. Tokyo Electron Limited (8035) was up 0.03%, while SoftBank Group Corp. (9984) fell by 0.07%

Check out our economic calendar for 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.

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