Hang Seng Index, ASX200, Nikkei 225: US Inflation Remains in Focus

Key Insights:

• It was a bullish Thursday session, with the Nikkei leading the Hang Seng Index and the ASX 200 on corporate earnings.
• Softer-than-expected US inflation numbers will set the mood this morning.
• Post-US CPI Report Fed commentary will also need consideration ahead of US producer price index numbers later today.

It was a bullish Thursday session for the Hang Seng Index and the broader Asian markets. The Nikkei led the ASX 200 and Hang Seng Index, with corporate earnings delivering a bullish Thursday session for the Nikkei.

There were no economic indicators from the Asian region on Thursday or overnight US economic indicators from Wednesday to influence market sentiment. However, pre-US CPI Report anxiety tested buyer appetite throughout the session.

Today, overnight US economic indicators from the Thursday session will impact market risk sentiment across the Asian markets on Friday.

The US annual inflation rate accelerated from 3.0% to 3.2%, while the core inflation rate softened from 4.8% to 4.7%. Significantly, the numbers were softer than expected. Economists forecast an annual and a core inflation rate of 3.3% and 4.8%, respectively.

The NASDAQ Composite Index rose by 0.12% on Thursday. The Dow and the S&P 500 saw gains of 0.15% and 0.03%, respectively.

Today, there are no Asian economic indicators to influence, leaving investors to respond to the overnight US CPI Report.

ASX 200

The ASX 200 gained 0.26% on Thursday as investors awaited the US CPI Report.

The Commonwealth Bank of Australia (CBA) and The National Australia Bank (NAB) fell by 0.36% and 0.14%, respectively. ANZ Group (ANZ) ended the day down 0.12%. However, Westpac Banking Corp (WBC) bucked the trend, gaining 0.32%.

Mining stocks also had a mixed session, with Fortescue Metals Group (FMG) and BHP Group Ltd (BHP) ending the day up 1.37% and 0.62%, respectively. Newcrest Mining (NCM) and Rio Tinto (RIO) fell by 0.69% and 0.54%, respectively.

Oil stocks had a bullish session. Woodside Energy Group (WDS) and Santos Ltd (STO) gained 1.85% and 2.55%, respectively.

Hang Seng Index

The Hang Seng Index recovered from early losses to the day up 0.01%.

Considering the main Index components, Tencent Holdings Ltd (HK:0700) and Alibaba Group Holding Ltd (HK:9988) saw gains of 0.21% and 0.77%, respectively. Alibaba beat earnings estimates on Thursday, announcing a 14% jump in first-quarter revenue.

Bank stocks had a bearish session. HSBC Holdings PLC fell by 0.74%. The Industrial and Commercial Bank of China (HK:1398) and China Construction Bank (HK: 0939) ended the day down 0.55% and 0.23%, respectively.

CNOOC (HK: 0883) rose by 1.72%.

Nikkei 225

(For reference purposes only)

The Nikkei 225 enjoyed a bullish end to the week, gaining 0.84%, with corporate earnings providing support. Honda Motor Co rallied by 5.87% on a surge in quarter profits. Today, the markets in Japan are closed for Mountain Day.

The banks had a bullish session. Sumitomo Mitsui Financial Group (8316) and Mitsubishi UFJ Financial Group saw gains of 1.16% and 2.42%, respectively.

Looking at the main components, KDDI Corp (9433) and Fast Retailing Co (9983) rose by 1.26% and 1.83%, respectively. SoftBank Group Corp. (9984) also found support, gaining 0.37%.

However, Sony Corp (6758) declined by 3.23% on a slide in operating profit, with Tokyo Electron Limited (8035) falling by 1.49%.

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