Hang Seng Index, ASX200, Nikkei 225: Mining Stocks Support the ASX200

• It was a mixed Wednesday morning for the Asian markets, with the Hang Seng Index and Nikkei on the slide, while the ASX 200 found support.
• Economic indicators from China continued to support the ASX200, while the Hang Seng Index struggled on Fed Fear.
• A weaker USD/JPY pressured the Nikkei, with economic indicators from Japan also weighing.

Market Overview

It was a mixed morning for the Asian markets. The Hang Seng Index and Nikkei struggled, while mining stocks delivered ASX 200 support.

Better-than-expected economic indicators from China continued supporting mining stocks and the ASX 200, while Fed Fear weighed on the Hang Seng Index. Economic indicators from Japan also disappointed this morning, adding to the bearish mood.

On Tuesday, FOMC member Raphael Bostic reportedly spoke of one more rate hike ahead, while Fed hawk James Bullard said that the Fed should respond to persistent inflation by continuing to lift interest rates.

According to the FedWatchTool, the probability of a 25-basis point May interest rate hike fell from 85.2% to 81.9% this morning.

US corporate earnings results also tested investor sentiment this morning. Goldman Sachs (GS) reported a fall in profits, while Johnson & Johnson (JNJ) warned of the effects of elevated inflation.

The mixed earnings and Fed chatter left the NASDAQ Composite Index and Dow Jones with modest losses, while the S&P 500 eked out a 0.09% gain. However, the NASDAQ mini was down 23.5 points, with the Dow falling by 51. The S&P 500 was flat.

ASX 200

The ASX 200 was up 0.18%, with the China numbers from Tuesday continuing to support mining stocks.

The big-4 had a mixed morning. Westpac Banking Corp (WBC) and The Commonwealth Bank of Australia (CBA) rose by 0.04% and 0.04%, respectively. However, the National Australia Bank (NAB) and ANZ Group (ANZ) saw losses of 0.31% and 0.25%, respectively.

Mining stocks had a bullish morning. Rio Tinto (RIO) and BHP Group Ltd (BHP) were up by 1.79% and 1.70%, respectively, with Fortescue Metals Group (FMG) rising by 0.84%. Newcrest Mining (NCM) fell by 0.24%.

However, oil stocks had another bearish morning. Woodside Energy Group (WDS) and Santos Ltd (STO) were down by 0.80% and 0.77%, respectively. Brent Crude was down 0.15% to $84.64 this morning.

Hang Seng Index

The Hang Seng was down 0.69% this morning. Fed Fear weighed on the Hang Seng Index, with no economic indicators from overnight or this morning to influence investor sentiment.

Considering the main components, Tencent Holdings Ltd (HK:0700) and Alibaba Group Holding Ltd (HK:9988) were down by 1.64% and 0.90%, respectively.

It was a mixed morning for banking stocks. The Industrial and Commercial Bank of China (HK:1398) rose by 0.70%, while HSBC Holdings PLC and China Construction Bank (HK: 0939) saw losses of 0.80% and 1.12%, respectively.

CNOOC (HK: 0883) was down 1.25%.

Nikkei 225

The Nikkei 225 was down 0.30% this morning, weighed by a weaker USD/JPY and disappointing economic indicators from Japan.

The Reuters Tankan Index was in focus in the early hours, with the Index holding steady at -3 versus a forecasted rise to -1. The Index fell for three consecutive months before holding steady in April. Notably, the Index sat in negative territory for a fourth month, signaling a gloomy outlook.

However, the survey coincided with jitters over a banking crisis and credit crunch. The survey revealed a likely pickup in sentiment in the coming months, limiting the impact on the Nikkei.

Bank stocks made further gains, with Sumitomo Mitsui Financial Group (8316) and Mitsubishi UFJ Financial Group seeing gains of 0.34% and 0.35%, respectively.

Looking at the main components, KDDI Corp (9433) and SoftBank Group Corp. (9984) saw losses of 0.53% and 0.46%, respectively, with Tokyo Electron Limited (8035) falling by 0.50%. However, Fast Retailing Co (9983) and Sony Corp (6758) found support, rising by 0.50% and 0.74%, respectively.

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