[ad_1]
Key Insights:
- It was a mixed Friday session for the Asian equity markets, with the Hang Seng Index finding support while the ASX 200 and Nikkei saw red.
- US economic indicators delivered a bullish session for the HSI, while economic indicators and the BoJ left the ASX 200 and the Nikkei on the back foot.
- It is a busy start to the week, with economic indicators from Japan and China in focus. However, US economic indicators from Friday will also influence.
It was a mixed Friday for the Hang Seng Index and the broader Asian markets. The Hang Seng Index ended the week on a high note, while the ASX 200 and the Nikkei saw red.
Overnight US economic indicators from Thursday were bullish, with the hotter-than-expected Q2 GDP numbers supporting the soft-landing theory. The US economy expanded by 2.4% in Q2 versus 2.0% in the first quarter, siding with Fed staff expectations the US would avoid a recession.
Economic indicators from Australia weighed on the ASX 200, while the Bank of Japan tweaked its Yield Curve Control Policy, sending Japan government bond yields higher.
For today’s session, industrial production and retail sales numbers from Japan will draw interest. However, NBS private sector PMIs from China will drive market risk sentiment. From Friday, US Core PCE Price Index numbers should deliver early support.
The US Core PCE Price Index increased by 4.1% year-over-year in June versus 4.6% in May. Economists forecast an increase of 4.2%. Easing bets on a September Fed rate hike supported the soft-landing theory.
The US equity markets responded to the US economic indicators, with the NASDAQ Composite Index rallying 1.90%. On Friday, the Dow and the S&P 500 saw gains of 0.50% and 0.99%, respectively.
The ASX 200 fell 0.70% on Friday. Bank and mining stocks weighed as investors responded to hotter-than-expected producer price index numbers and weak retail sales figures.
Retail sales declined by 0.8% in June, reversing a 0.8% increase from May. The producer price index unexpectedly increased by 0.5% in the second quarter. Economists forecast a 0.7% decline, raising fears of a hawkish RBA policy decision.
The big-4 had a bearish Friday session. The Commonwealth Bank of Australia (CBA) fell by 0.97%, with The National Australia Bank (NAB) and Westpac Banking Corp (WBC) seeing losses of 0.32% and 0.31%, respectively. ANZ Group (ANZ) slipped by 0.08%.
Mining stocks also had a bearish session, with Rio Tinto and BHP Group Ltd (BHP) falling by 1.00% and 0.82%, respectively. Fortescue Metals Group slid by 5.41% on weak earnings, with Newcrest Mining (NCM) ending the day down 1.82%.
Oil stocks had a mixed session. Woodside Energy Group (WDS) gained 0.34%, while Santos Ltd (STO) fell by 0.13%.
Hang Seng Index
The Hang Seng Index rallied by 1.41%, spurred by the better-than-expected US GDP numbers.
Considering the main Index components, Tencent Holdings Ltd (HK:0700) and Alibaba Group Holding Ltd (HK:9988) saw gains of 1.92% and 0.47%, respectively.
However, bank stocks had a mixed session. HSBC Holdings PLC bucked the trend, falling by 0.23%. The Industrial and Commercial Bank of China (HK:1398) and China Construction Bank (HK: 0939) ended the day up 1.08% and 1.36%, respectively.
CNOOC (HK: 0883) rose by 0.32%.
Nikkei 225
(For reference purposes only)
The Nikkei 225 fell by 0.40% on Friday, with the Bank of Japan and a weaker USD/JPY weighing. On Friday, the Bank of Japan tweaked its Yield Curve Control Policy, announcing that it would allow 10-year government bond yields to move with greater flexibility.
Tokyo’s inflation numbers were hotter than expected. The core annual inflation rate eased from 3.2% to 3.0% versus a forecasted 2.9%.
The banks had a bullish session. Sumitomo Mitsui Financial Group (8316) and Mitsubishi UFJ Financial Group rallied by 4.30% and 5.28%, respectively.
Looking at the main components, Tokyo Electron Limited (8035) bucked the trend, rising by 2.50%. However, KDDI Corp (9433) and Sony Corp (6758) ended the day down 1.00% and 1.29%, respectively. Fast Retailing Co (9983) and SoftBank Group Corp. (9984) fell by 0.11% and 0.10%, respectively.
Check out our economic calendar for economic events.
[ad_2]
Source link
