Hang Seng Index, ASX200, Nikkei 225: US Jobs Report Jitters Surface

• It was a bearish morning for the Asian markets, with the Hang Seng and ASX 200 seeing heavy losses.
• Market angst toward the US Jobs Report and news of SVB Financial Group (SIVB) falling into distress sent the Asian majors into the red.
• The Bank of Japan cushioned the downside for the Nikkei, however.

Market Overview

It was a bearish morning for the Asian markets, with the Hang Seng and the ASX 200 seeing heavy losses. The bearish sentiment from the US session spilled over to the morning session as investors turned their attention to the all-important US Jobs Report.

Following the unexpectedly hawkish Fed Chair Powell testimony on Tuesday, another hotter-than-expected Jobs Report could push rate peak forecasts higher, raising the threat of a global recession and a US hard landing.

Beyond the economic calendar, SVB Financial Group (SIVB) announced a $1.75 billion share sale to address balance sheet woes, spooking investors following the demise of Silvergate Bank.

On Thursday, the NASDAQ Composite Index slid by 2.05%, with the Dow and S&P 500 seeing losses of 1.66% and 1.85%, respectively.

The economic calendar was quieter this morning, with the Japanese economy and the Bank of Japan in the spotlight. However, the stats and the ultra-loose Bank of Japan failed to provide support. From elsewhere, China Premier Xi secured a third time as President.

ASX 200

The ASX 200 was down 2.07%. There were no economic indicators from Australia to influence, leaving Fed Fear to grip investor sentiment ahead of the US Jobs Report. Bank stocks followed their US peers into the deep red on the SVB Financial Group (SIVB) news.

Bank stocks were in free fall. ANZ Group (ANZ) and Commonwealth Bank of Australia (CBA) fell by 3.27% and 3.34%, respectively. Westpac Banking Corp (WBC) and National Australia Bank (NAB) were down by 3.08% and 3.11%, respectively.

Oil stocks were also in negative territory, with Woodside Energy Group (WDS) sliding by 3.09% and Santos Ltd (STO) falling by 2.16%. Sliding oil prices from Thursday and a further pullback this morning weighed on oil stocks. Brent Crude was down 0.50% to $81.18 this morning.

Mining stocks had a mixed session. Rio Tinto (RIO) and BHP Group Ltd (BHP) were down by 2.53% and 2.6%, respectively, with Fortescue Metals Group (FMG) falling by 2.80%. Newcrest Mining (NCM) bucked the bearish trend, rising by 0.86%.

Hang Seng Index

The Hang Seng was down 2.49% this morning, with market angst ahead of the US Jobs Report weighing.

Looking at the main components of the Index, Tencent Holdings Ltd (HK:0700) was down 1.70%, with Alibaba Group Holding Ltd (HK:9988) sliding by 3.31%.

It was a bearish morning for banking stocks. HSBC Holdings PLC slid by 2.65%, with China Construction Bank (HK: 0939) falling by 0.81%. However, Industrial and Commercial Bank of China (HK:1398) was flat.

CNOOC (HK: 0883) responded to the overnight pullback in crude oil prices, falling by 0.98%.

Nikkei 225

The Nikkei 225 was down a relatively modest 0.43% this morning, with a stronger USD/JPY at 136.69 cushioning the downside. Economic data and the Bank of Japan failed to deliver a bullish session.

Household spending increased by 2.7% in January, reversing a 2.1% decline from December. Economists forecast a more modest rise of 1.4%. Year-over-year, spending fell by 0.3% versus a forecasted 0.1% decline. In December, household spending was down 1.3%.

There were no surprises from the Bank of Japan to move the dial. In line with expectations, the Bank of Japan left interest rates at a negative 0.1%. The Bank also stood by its promise of maintaining ultra-loose monetary policy by leaving the yield cap and bond yield control policy unaltered.

Looking at the main components, Fast Retailing Co (9983) and KDDI Corp (9433) fell by 0.96% and 0.12%, respectively. Sony Corp (6758) and SoftBank Group Corp. (9984) saw heavier losses of 2.49% and 3.37%, respectively. However, Tokyo Electron rose by 0.29%.

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