Hang Seng Index, ASX200, Nikkei 225: ASX 200 Gets Wall Street Support

Key Insights:

• It was a mixed morning session for the Asian markets, with the ASX200 in positive territory while the Hang Seng Index and Nikkei 225 saw red.
• A bullish US equity market session supported the ASX 200 ahead of the US CPI Report.
• Economic indicators delivered mixed results this morning. Weaker-than-expected GDP numbers from Japan weighed on the Nikkei.

Market Overview

It was a mixed morning session. While there were no material stats from the US to deliver a bullish start to the Tuesday session, a US household survey eased fears of a hot US CPI Report.

According to a Monday Fed press release, the January 2023 Survey of Consumer Expectations showed that household growth expectations fell significantly in January while holding above pre-pandemic levels. The survey results eased fears of a hotter-than-expected January CPI Report, supporting a bullish US market session.

On Monday, the NASDAQ Composite Index rose by 1.48%, with the Dow gaining 1.11%. Investor optimism delivered early support.

ASX 200

The ASX 200 was up 0.30% this morning. Economic indicators from Australia delivered mixed results. While consumer confidence waned in February, business confidence rebounded in January, which was market positive. The NAB Business Confidence Index rose from -1 to +6, while the Westpac Consumer Sentiment Index fell by 6.9%, reversing a 5.0% rise from January.

Easing fears of a hotter-than-expected US CPI Report delivered a bullish session for the Dow on Monday, which provided ASX 200 support this morning. However, the Index saw a modest gain, with the RBA monetary policy outlook a headwind.

This morning, bank stocks had a mixed session. National Australia Bank (NAB) and Westpac Banking Corp (WBC) saw gains of 0.67% and 0.19%, respectively, while the Commonwealth Bank of Australia (CBA) and ANZ Group (ANZ) were down by 0.07% and 0.04%, respectively.

Mining stocks were also having a mixed session. Rio Tinto (RIO) fell by 0.15%, while BHP Group Ltd (BHP) and Fortescue Metals Group (FMG) were up 0.08% and 0.45%, respectively. Newcrest Mining (NCM) resumed its upward trend, rising by 0.63%.

Oil stocks were on the rise, with Woodside Energy Group (WDS) and Santos Ltd (STO) up by 0.55% and 0.50%, respectively. The current uptrend in crude oil prices delivered support. The upside came despite a morning pullback in crude oil prices. WTI was down 1.24% to $79.15.

Hang Seng Index

The Hang Seng was down 0.41% this morning. Worsening US-China relations weighed on the Hang Seng Index.

Tencent Holdings Ltd (HK:0700) was down 1.14%, with Alibaba Group Holding Ltd (HK:9988) falling by 0.77%

Bank stocks provided modest support, with Industrial and Commercial Bank of China (HK:9988) and China Construction Bank (HK: 0939) rising by 0.25% and 0.40%, respectively, with HSBC Holdings PLC up by 0.51%.

CNOOC (HK: 0883) found further support despite this morning’s pullback in crude oil prices, rising by 0.70%.

Nikkei 225

The Nikkei 225 was down 0.53% this morning, with the downside coming from disappointing GDP numbers and a weaker USD/JPY at 132.155 (-0.16%).

According to the Ministry of Foreign Affairs, the Japanese economy expanded by 0.2% in Q4 versus a forecasted growth of 0.5%. The economy contracted by 0.3% in Q3. Year-over-year, the economy grew by 0.6% versus a forecasted 2.0% growth. In Q3, the economy contracted by 1.0%.

Recruit Holdings (6098) tumbled by 4.89%, while Tokyo Electron Ltd (8035) rose by 1.99%. SoftBank Group Corp. (9984) saw a modest 0.09% gain, with KDDI Corp (9433) rising by 0.85%. Despite the disappointing GDP numbers, Sony Corp (6758) was up 0.73%.