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For more analysis on the Hang Seng Index and global market trends, click here.
Commodities: Gold Hits $3K as Iron Ore and Crude Oil Hold Steady
Commodity markets delivered a mixed performance amid trade tensions and shifting supply-demand dynamics.
- Gold rallied 2.55% in the week ending March 14, striking a record high of $3,005 before easing back to close the week at $2,984. Fears of a tariff-induced US recession boosted demand for safe-haven assets.
- Iron ore prices dipped 0.16% to $759 as investors considered the impact of steel tariffs on demand.
- Crude oil edged 0.03% higher to $67.23 as falling gasoline inventories and softer-than-expected crude inventories supported current price levels.
ASX 200 Extends Losing Streak to Four Weeks
The ASX 200 declined by 1.99% in the week ending March 14, marking its fourth consecutive weekly loss.
US steel and aluminum tariffs and potential full-blown US trade wars with the EU and China impacted risk assets. News that Australia would not receive exemptions from US aluminum and steel tariffs added to the negative sentiment.
The Nasdaq’s continued retreat weighed on tech stocks, while tariff and US recession concerns weighed on banking stocks.
- The S&P/ASX All Technology Index tumbled 4.95%.
- Banking Sector: The Commonwealth Bank of Australia (CBA) slid by 4.13%, while Westpac Banking Corp (WBC) dropped 3.14%.
- Gold Stocks: Meanwhile, Northern Star Resources (NST) jumped 3.77% on the upswing in gold prices.
Nikkei Index Edges Higher on Yen Weakness
A weaker Japanese Yen bolstered demand for Japanese stocks as the USD/JPY rose 0.40% to close the week at 148.618. A softer Yen boosts Japanese corporate earnings by making exports more competitive.
- Tokyo Electron (8035) gained 1.73% in the week ending March 14, while Softbank Group (9984) fell 1.47% amid the US tech sector sell-off
- Bank stocks led the gains on expectations of a more hawkish BoJ rate path. Mitsubishi UFJ Financial Group rallied 4.06%, with Sumitomo Mitsui Financial Group rising 3.01%.
Market Outlook: Key Events to Watch
The upcoming week will be crucial for the Asian markets. Economic data, central bank maneuvers, 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.
- China Stats and Beijing Stimulus: Crucial economic data from China could influence stimulus expectations and risk sentiment on March 17. Stimulus measures to boost domestic consumption could further mitigate tariff risks, supporting demand for HK and Mainland-listed stocks.
- US Federal Reserve and Bank of Japan Interest Rate Decisions: The Fed and the BoJ will announce interest rate decisions and provide forward guidance this week. Monetary policy divergence could impact the USD/JPY, potentially raising the threat of a Yen carry trade unwind.
With economic uncertainty and market volatility persisting, traders should closely monitor global macroeconomic trends and policy shifts here to navigate risks effectively.
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