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The Hang Seng Index declined for the fourth consecutive week, falling 2.46% amid fears of a global recession. However, the Hong Kong and Mainland China markets were closed on Friday, April 4, for the Ching Ming Festival, tempering the week’s losses.
- The Hang Seng Technologies Index slid 3.51%, with heavy losses in the EV and tech sectors.
- BYD Electronic (00285.HK) plunged 10.71%, BYD Company Ltd. (01211.HK) slid 7.87%, NIO Inc. (09866.HK) fell 4.96%, and Li Auto (02015.HK) declined 2.11% in the shortened week.
- Tech giants Alibaba (09988.HK) and Baidu (09888.HK) posted weekly losses of 5.73% and 5.95%, respectively.
However, these names could face a tumultuous Monday if weekend trade talks or policy measures fail to boost risk sentiment.
Brian Tycangco, editor/analyst at Stansberry Research, commented:
“Chinese ADRs very much on the defensive rn (right now) without guidance from Asia since markets were closed for the Qing Ming Festival. Beijing has in the past announced market moving policies over the weekend.”
Chinese ADR moves on April 4 included BABA (-10.45%), Bidu (-9.37%), and JD.com (-9.45%).
Meanwhile, Mainland China’s equity markets saw relatively modest losses. The CSI 300 fell 1.37%, while the Shanghai Composite Index dropped 0.28%. Upbeat Manufacturing and Services PMI data and stimulus hopes helped cushion declines.
For more analysis on the Hang Seng Index and global market trends, click here.
Commodities: Gold, Iron Ore, and Oil Sink
Commodities were hit hard by tariff concerns, central bank rhetoric, and OPEC developments.
- Gold ended a four-week winning streak, falling 1.52% to $3,037. Trump’s tariffs drove gold to a record high of $3,168. However, a hawkish Fed Chair Powell and upbeat US labor market data triggered a Friday reversal.
- WTI crude oil prices tumbled 9.81%, closing at $62.48. Demand concerns and OPEC’s plans to raise output triggered the sell-off.
- Iron ore spot prices declined 0.33% in the week.
ASX 200 Sinks Amid Recession Fears
The ASX 200 slid 3.94% in the week, with mining, oil, and tech stocks dragging the Index into the red.
- Mining sector: BHP Group Ltd. (BHP) and Rio Tinto Ltd. (RIO) tumbled 7.23% and 7.06%, respectively.
- Energy sector: Woodside Energy Group Ltd. (WDS) plunged 14.2%.
- Tech Sector: The S&P/ASX All Technology Index dropped 7.5%.
Nikkei Index Slumps on Yen Strength and Tariffs
The Nikkei Index dropped 7.30% in the week as investors reacted to Trump’s tariffs, retaliations, and surge in Japanese Yen demand. The USD/JPY fell 1.94% to 146.904 in the week. A combination of higher tariffs and a stronger Yen could significantly impact demand for Japanese goods and corporate earnings.
- Auto Sector: Nissan Motor Corp. (7201) slumped 13.46%, while Honda Motor Co. (7267) slid 9.24%. Japanese automakers face an uncertain outlook as Japan is the second largest exporter of cars to the US.
- Tech sector: Tokyo Electron (8035) and Softbank Group (9984) dropped 11.92% and 15.96%, respectively.
Looking Ahead: Key Events on the Radar
Investors should closely monitor policy announcements from Beijing, tariff headlines, economic data, and central bank developments. Key events include:
- Tariffs negotiations: Progress could improve sentiment.
- Beijing Stimulus: Stimulus measures targeting consumption and domestic demand could mitigate tariff risks.
- Key Economic Data: China inflation and trade figures, the US CPI Report, and Fed commentary.
Amid market turbulence, traders should remain alert to global macro shifts and policy responses. Get in-depth insights on Hang Seng movers here.
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