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Hang Seng Index, Nikkei Index, ASX 200: Retail Sales, Futures Predict Market Directions

By:
Bob Mason
Updated: May 27, 2024, 22:48 GMT+00:00

Key Points:

  • On Monday (May 27), the Hang Seng Index, ASX 200, and the Nikkei Index tracked the Friday US equity market session into positive territory.
  • The US futures markets and commodity price trends will set the tone for the Tuesday (May 28) Asian session.
  • Retail sales figures from Australia could influence the RBA rate path and the ASX 200.
Hang Seng Index, Nikkei Index, ASX 200

In this article:

US Equity Markets: Futures to Set the Tone after the Memorial Day Holiday

On Monday, there were no US economic indicators for investors to consider going into the Tuesday (May 28) Asian session. The US markets were closed for the Memorial Day holidays.

Nevertheless, the US futures will likely guide the Asian markets as investors consider the shifting bets on a September Fed rate cut.

The Nasdaq mini was up 47 points on Tuesday, with the Dow mini rising by 34 points.

Asian Economic Calendar: Aussie Retail Sales and the RBA

Australian retail sales figures will warrant investor attention on Tuesday.

Economists forecast retail sales to increase by 0.3% in April after declining by 0.4% in March. Larger-than-expected retail sales figures could test investor bets on a 2024 RBA rate cut. Sticky inflation remains a challenge for the RBA. A pickup in consumption could fuel demand-driven inflationary pressure and warrant a more hawkish RBA rate path.

A more hawkish RBA rate path may impact ASX-200 listed stocks.

However, investors should consider central bank commentary. The weak Japanese Yen continues to leave the Bank of Japan on watch.

Commodities: Crude Oil, Gold, and Iron Ore

On Monday, gold spot (XAU/USD) advanced by 0.73%, closing the session at $2,350.76.

On the Singapore Futures Exchange, iron ore prices were up 0.14% on Tuesday. Iron ore spot rose by 0.16% on Monday.

The USD/JPY and Nikkei Index

The USD/JPY ended a three-session winning streak, falling 0.09% on Monday to end the session at 156.815. A stronger Japanese Yen may affect buyer demand for Nikkei-listed export stocks.

The Futures Markets

On Tuesday, the ASX 200 and the Nikkei Index were up by 6 and 50 points, respectively.

ASX 200

ASX 200 had a bullish start to the week.
ASX200 280524 Daily Chart

The ASX 200 advanced by 0.79% on Monday. Bank, gold, and tech stocks contributed to the gains. On Monday, the S&P/ASX All Tech Index advanced by 0.40%, tracking the Nasdaq gains from Friday.

Gold-related stocks Northern Star Resources Ltd. (NST) and Evolution Mining Ltd (EVN) rallied 1.83% and 2.61%, respectively.

ANZ Group Holdings Ltd. (ANZ) rose by 1.14%, with Commonwealth Bank of Australia (CBA) gaining 1.03%. National Australia Bank Ltd. (NAB) and Westpac Banking Corp. (WBC) saw gains of 0.80% and 0.72%, respectively.

However, oil and mining stocks had a mixed start to the week.

Fortescue Metals Group Ltd. (FMG) and Rio Tinto Group Ltd. (RIO) fell by 0.97% and 0.61%, respectively. BHP Group Ltd (BHP) ended the Monday session up 1.14%.

Woodside Energy Group Ltd (WDS) declined by 0.79%, while Santos Ltd (STO) ended the session flat.

Hang Seng Index

Hang Seng Index enjoyed tech and real estate stock support on Monday.
HSI 280524 Daily Chart

The Hang Seng Index gained 1.17% on Monday. Real estate and tech stocks contributed to the gains. The Hang Seng Mainland Properties Index (HSMPI) advanced by 0.45%, with the Hang Seng Tech Index (HSTECH) gaining 1.71%.

Alibaba (9988) advanced by 1.41. However, Baidu (9888) and Tencent Holdings (0700) saw gains of 0.20% and 0.27%, respectively.

Bank stocks also had a positive start to the week. HSBC (0005) rose by 0.58%, with China Construction Bank (0939) gaining 0.35%. Industrial Commercial Bank (1398) ended the session flat.

The Nikkei Index

Nikkei Index tracked the broader Asian markets into positive territory.
Nikkei 280524 Daily Chart

(Graph for reference purposes only)

The Nikkei Index rose by 0.66% on Monday.

Bank stocks had a positive session. Sumitomo Mitsui Financial Group Inc. (8316) and Mitsubishi UFJ Financial Group Inc. (8306) gained 1.38% and 1.24%, respectively.

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

Softbank Group Corp. (9984) and Fast Retailing Co. Ltd. (9983) advanced by 1.10% and 1.29%, respectively. KDDI Corp. (9433) gained 1.02%.

However, Sony Group Corporation (6758) declined by 0.75%, with Tokyo Electron Ltd. (8035) ending the session down 0.45%.

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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