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Hang Seng Index, Nikkei 225, ASX 200: Nikkei Futures Down 380 on Intervention Threats

By:
Bob Mason
Updated: Apr 24, 2024, 22:52 GMT+00:00

Key Points:

  • The Nikkei 225 and Hang Seng Index enjoyed breakout sessions on Wednesday, while Aussie inflation figures pressured the ASX 200.
  • The US equity market session from Wednesday and US corporate earnings results will set the tone for the Thursday Asian session.
  • Corporate earnings will also be in focus, with CNOOC (HK0883) among the big names to release earnings results.
Hang Seng Index, Nikkei 225, ASX 200

In this article:

US Equity Markets: Core Durable Goods Orders and Earnings

On Wednesday, April 24, US core durable goods orders warranted investor attention. Core durable goods orders increased by 0.2% in March after rising by 0.1% in February. Economists expected a 0.3% increase. Moreover, durable goods orders advanced by 2.6% after rising by 0.7% in February. Economists forecast a 2.5% increase. The numbers signaled a robust US economy.

Beyond the economic calendar, US corporate earnings results from Boeing (BA), Meta (META), and Ford (F) also influenced the US equity market trends.

On Wednesday, the Dow declined by 0.11%. Moreover, the Nasdaq Composite Index and the S&P 500 saw gains of 0.10% and 0.02%, respectively.

Corporate earnings and movements across the US equity markets will likely set the tone for the Thursday Asian session.

Asian Economic Calendar: Corporate Earnings and Pre-BoJ Jitters

On Thursday, April 25, corporate earnings will be in focus as investors prepare for the Bank of Japan monetary policy decision (Fri).

CNOOC (HK0883) is among the big names to release earnings results on Thursday.

There are no stats from the Asian economic calendar for investors to consider. Nevertheless, investors should consider possible guidance from Bank of Japan Governor Kazuo Ueda on Friday.

The weaker Japanese Yen could scupper hopes of households increasing spending after recent wage hikes. Bank of Japan Governor Kazuo Ueda also warned of further rate hikes if inflation continues accelerating toward the 2% target. A more hawkish BoJ rate path could impact Nikkei-listed export stocks.

Commodities: Crude Oil, Gold, and Iron Ore

On Wednesday, gold (XAU/USD) prices continued to trend lower, declining by 0.25% to $2,316. WTI crude oil prices also headed south, ending the session down 0.66% to $82.81.

However, on the Singapore Futures Exchange, iron ore prices advanced by 1.15%.

The USD/JPY, the Intervention Zone, and the Nikkei

The USD/JPY gained 0.33% on Wednesday, closing the session at 155.334. While a stronger USD/JPY supports Nikkei-listed export stocks, the USD/JPY entered the intervention zone on Wednesday. The threat of a Japanese government intervention could impact the Nikkei.

The Futures Markets

On Thursday, the ASX 200 and Nikkei were down 58 and 380 points, respectively. However, there is no trading on the ASX 200, with the Australian markets closed for ANZAC Day.

ASX 200

ASX 200 ended Wednesday in the red on inflation numbers.
ASX200 250424 Daily Chart

The ASX 200 slipped by 0.01% on Wednesday, ending a two-day winning streak. Hotter-than-expected Aussie inflation numbers reversed gains from earlier in the session. Bank, oil, tech, and gold-related stocks cushioned the downside. The S&P ASX All Technology Index (XTX) rose by 0.02%.

National Australia Bank Ltd. (NAB) and Westpac Banking Corp. (WBC) advanced by 0.47% and 0.85%, respectively. ANZ Group Holdings Ltd. (ANZ) gained 0.25%, with Commonwealth Bank of Australia (CBA) rising by 0.37%.

Gold stocks Northern Star Resources Ltd. (NST) and Evolution Mining Ltd (EVN) ended the session up 0.95% and 0.51%, respectively.

Woodside Energy Group Ltd (WDS) and Santos Ltd (STO) saw gains of 0.49% and 0.52%, respectively.

However, mining stocks contributed to the pullback. BHP Group Ltd (BHP) and Rio Tinto Ltd. (RIO) fell by 0.59% and 0.15%, respectively. Fortescue Metals Group Ltd. (FMG) bucked the trend, gaining 0.65%.

Hang Seng Index

Hang Seng Index rallied for a third successive session.
HSI 250424 Daily Chart

On Wednesday, the Hang Seng Index rallied 2.21%. Real estate and tech stocks saw solid gains. The Hang Seng Tech Index (HSTECH) advanced by 3.61%, with the Hang Seng Mainland Properties Index (HSMPI) gaining 2.14%.

Tencent (0700) and Alibaba (9988) rallied 3.55% and 3.87%, respectively.

Bank stocks had a positive Wednesday session. HSBC (0005) advanced by 0.70%. Moreover, China Construction Bank (0939) and Industrial Commercial Bank (1398) saw gains of 0.41% and 0.49%, respectively.

The Nikkei 225

Nikkei ended Wednesday in the green.
Nikkei 250424 Daily Chart

(Graph for reference purposes only)

The Nikkei extended gains from Tuesday, rallying 2.42% on Wednesday.

Bank stocks continued to climb higher. Sumitomo Mitsui Financial Group Inc. (8316) and Mitsubishi UFJ Financial Group Inc. (8306) increased by 0.83% and 1.00%, respectively.

However, it was a mixed session for the main components of the Nikkei 225.

Tokyo Electron Ltd. (8035) surged 7.11%, with Softbank Group Corp. (9948) rallying 3.15%. Fast Retailing Co. Ltd. (9983) and Sony Group Corporation (6758) advanced by 2.13% and 2.76%, respectively.

However, KDDI Corp. (9433) bucked the trend, falling by 0.68%.

For upcoming economic events, refer to our economic calendar.

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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