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The Hang Seng Index reversed losses from the previous week, rallying 5.62%. Investors brushed aside President Trump’s tariff hikes in favor of Beijing’s stimulus efforts.
The Hang Seng Mainland Properties Index extended its gains from the previous week, rising 5.25%, while the Hang Seng Technologies Index surged 8.43%. Notably, Alibaba (9988) and Baidu (9888) posted weekly gains of 9.80% and 8.74%, respectively.
Mainland China equity markets also climbed higher in the week ending March 7. The CSI 300 and Shanghai Composite Index advanced by 1.39% and 1.56%, respectively. However, the gains were more modest as trade war concerns lingered.
Brian Tycangco, editor and analyst at Stansberry Research, summed up the week’s developments:
“China is ‘collapsing upwards.’ Manufacturing PMI expanding. Services PMI expanding. Monetary supply at ATH. Property market stabilizing. HSI at a 3yr high.”
For more analysis on the Hang Seng Index and global market trends, click here.
Commodities: Gold Advances as Iron Ore and Crude Oil Slide
Commodity markets had a mixed week, influenced by risk sentiment and supply-demand dynamics:
- Gold advanced by 1.83% in the week ending March 7, closing at $2,910. Expectations of a more dovish Fed and recession fears drove prices higher.
- Iron ore prices dropped by 2.14% after the previous week’s 5.41% slide amid tariff uncertainty and demand concerns.
- Crude oil tumbled 4.24% to $66.635 after OPEC+ announced supply increases while US inventories soared.
ASX 200 Mirrors US Market Set Back
The ASX 200 slid by 2.74% in the week ending March 7, marking its third consecutive weekly loss. Tariff concerns, weak US data, and commodity prices dragged the Index into the red. Banking, oil, and tech stocks led the losses.
- The S&P/ASX All Technology Index dropped by 2.12%.
- Woodside Energy Group (WDS) tumbled 9.20%.
- Commonwealth Bank of Australia (CBA) led the banking sector losses, sliding 5.26%.
Nikkei Index Slumps on Tariff Woes and Yen Strength
The Nikkei Index ended the week down 1.94%. A stronger Japanese Yen pressured Japanese stocks as the USD/JPY slid by 1.71% to end the week at 148.033, reducing the overseas earnings of Japanese corporations.
- Tokyo Electron (8035) and Softbank Group (9984) dropped 4.56% and 3.87%, respectively.
- Sony Group Corp. (6758) fell 4.55%.
- Meanwhile, Nissan Motor Co. (7201) advanced by 2.19% on Trump’s tariff exemption for certain automakers.
Market Outlook: Key Events to Watch
The upcoming week could be crucial for the Asian markets. Economic data, central bank forward guidance, and tariff developments will be focal points. Key events include:
- US tariffs: Trump’s shifting stance remains a key risk factor for global markets. Any further policy shifts will influence investor sentiment.
- Beijing stimulus: Additional stimulus measures from China could offset the negative impact of US tariffs, particularly in the wake of the National People’s Congress.
- Bank of Japan Policy Stance and USD/JPY Trends: The spring wage negotiations (Shunto), key economic indicators, and BoJ chatter could influence USD/JPY trends and Japanese stocks. Rising Japanese Government Bond (JGB) yields may raise the threat of a Yen carry trade unwind, impacting risk assets.
With ongoing economic uncertainty and volatile market conditions, traders should closely monitor macroeconomic trends and policy shifts here to navigate risks effectively.
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