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The Hang Seng Mainland Properties Index ended the week up 6.17% on the recapitalization news. Meanwhile, Li Auto (2015) soared 7.4% after unveiling its first all-electric SUV.
Despite the stimulus news, tech stocks faced intense selling pressure as US tariffs loomed. The Hang Seng Technologies Index slid 4.97%, with tech giants Alibaba (9988) and Baidu (9888) logging weekly losses of 7.94% and 6.7%, respectively.
Mainland China equity markets also ended the week in negative territory, pressured by the prospect of US tariffs. The CSI 300 and Shanghai Composite Index dropped by 2.22% and 1.72% in the week ending February 28. However, hopes for fresh stimulus measures helped provide some support as investors awaited the upcoming third session of the 14th NPC.
For more analysis on the Hang Seng Index and global market trends, click here.
Commodities: Gold Slides, Iron Ore Plunges, Crude Oil Dips
Commodity markets faced broad selling pressure as Trump’s tariff announcements rattled investors:
- Gold ended its eight-week winning streak despite striking a new record high of $2,956, falling 2.67% to close at $2,858.
- Iron ore prices tumbled 5.41% as fears of weaker global demand hit sentiment.
- Crude oil slipped 0.48%, closing at $70.221 amid concerns that tariffs could slow economic growth.
ASX 200 Slides as Mining Stocks Sink
The ASX 200 declined by 1.49% in the week, adding to the previous week’s 3.03% plunge. US tariff developments and market reaction to Nvidia’s forward guidance weighed on sentiment. The S&P/ASX All Technology Index plummeted 8% in the week.
Key stock movements included:
- Northern Star Resources Ltd. (NST) fell 5.45%, pressured by gold price trends.
- BHP Group Ltd. (BHP) and Rio Tinto ltd. (RIO) dropped 5.38% and 8.19%, respectively, weighed by iron ore spot price losses.
- Meanwhile, ANZ (ANZ) and Commonwealth Bank of Australia (CBA) closed the week up 3.47% and 3.3%, respectively. Falling 10-year US Treasury yields fueled demand for higher-yielding Aussie bank stocks.
Nikkei Index Drops Amid Nvidia Selloff, Yen Strength
The Nikkei Index extended its weekly losses, falling 3.55%. An Nvidia-fueled global tech sector rout and US tariffs pressured Japanese markets.
- Tokyo Electron (8035) and Softbank Group (9984) dropped 6.26% and 11.90%, respectively.
- Sony Group Corp. (6758) fell 1.94%, while Nissan Motor Co. (7201) tumbled 6.26% as tariffs threatened Japanese exporters’ competitiveness.
The Japanese Yen weakened, with the USD/JPY pair rising 0.93% to end the week at 150.609. A weaker Japanese Yen typically boosts overseas earnings and corporate valuations.
Market Outlook: Key Events to Watch
The first week of March will be a pivotal week for Asian markets. Economic data, geopolitics, and tariffs will be focal points. Key events include:
- US tariffs: 10% tariffs on Chinese goods take effect on March 4. Further escalation in the US-China trade war could weigh on Asian markets.
- Third session of the 14th NPC: Fresh tariff measures targeting domestic consumption could provide Hong Kong and Mainland China stocks much-needed support.
- Bank of Japan Policy Stance: A hawkish BoJ policy outlook could drive Yen strength, impacting Japanese stocks.
- China Economic Data: Private sector PMIs and trade data will offer insights into the demand outlook.
- USD/JPY Trends: Rising Japanese Government Bond (JGB) yields could trigger a Yen carry trade unwind, impacting risk assets. However, BoJ threats to intervene in the bond markets could ease Yen demand.
Traders should closely monitor macroeconomic shifts and policy changes to navigate volatile market conditions.
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