Hang Seng Index, ASX200, Nikkei 225: Oil Inflation Jitters Weigh

• It was a mixed Tuesday morning for the Asian markets, with the Hang Seng Index seeing red while the Nikkei 225 enjoyed a bullish morning.
• The ASX 200 was in a holding pattern, awaiting the RBA monetary policy decision, with no stats for investors to consider this morning.
• US Futures also weighed, with the NASDAQ mini and the Dow Mini seeing red this morning, as investor concerns over inflation weighed on riskier assets.

Market Overview

It was a mixed morning for the Asian markets. The Hang Seng Index struggled, while the Nikkei found modest support. The ASX 200 was flat ahead of the RBA monetary policy decision.

From the US session, disappointing US economic indicators set the tone. In March, the ISM Manufacturing PMI fell from 47.7 to 46.3. Sub-components of the PMI drew interest, with the employment sub-index sliding from 49.1 to 46.9 and the prices sub-index falling from 51.3 to 49.2.

The bearish numbers from the US and investor jitters over the latest jump in crude oil prices and implications for inflation and monetary policy weighed on the Asian markets. A rise in energy prices could offset the effects of central bank policy moves and force further rate hikes at the expense of the global economy.

The ISM numbers from the US showed the early effects of Fed policy moves ahead of the all-important ISM Non-Manufacturing PMI on Wednesday and US Jobs Report on Friday.

There were no economic indicators from the Asian session for investors to consider.

After a mixed Monday session, the US futures were in the red. The NASDAQ mini was down 36.5 points, with the Dow falling by 12.

ASX 200

The ASX 200 was down 0.02%, with bank and mining stocks a drag ahead of the RBA monetary policy decision later this morning. Economists forecast a 25-basis point interest rate hike.

The big-4 were in negative territory this morning, with the Commonwealth Bank of Australia (CBA) and Westpac Banking Corp (WBC) falling by 0.52% and 0.48%, respectively. ANZ Group (ANZ) declined by 0.34%, with National Australia Bank (NAB) down 0.07%.

Oil stocks continued to respond to the OPEC move. Woodside Energy Group (WDS) and Santos Ltd (STO) saw gains of 0.73% and 2.05%, respectively.

However, mining stocks struggled. Rio Tinto (RIO) and BHP Group Ltd (BHP) were down by 0.34% and 1.52%, respectively, with Fortescue Metals Group (FMG) falling by 0.84%. Newcrest Mining (NCM) bucked the trend, rising by 2.83%.

Hang Seng Index

The Hang Seng was down 0.92% this morning.

Considering the main components, Tencent Holdings Ltd (HK:0700) and Alibaba Group Holding Ltd (HK:9988) fell by 1.08% and 3.70%, respectively.

However, it was a mixed morning for banking stocks. HSBC Holdings PLC fell by 0.28%, while the Industrial and Commercial Bank of China (HK:1398) and China Construction Bank (HK: 0939) rose by 1.70% and 0.39%, respectively.

CNOOC (HK: 0883) jumped by 1.84%.

Nikkei 225

The Nikkei 225 was up 0.27% this morning, with a stronger USD/JPY delivering support.

Bank stocks had a mixed morning. Sumitomo Mitsui Financial Group (8316) rose by 1.04%, while Mitsubishi UFJ Financial Group slipped by 0.20%.

Looking at the main components, Tokyo Electron Limited (8035) rose by 0.80%, with SoftBank Group Corp. (9984) and KDDI Corp (9433) seeing modest gains of 0.04% and 0.10%, respectively.

However, Fast Retailing Co (9983) and Sony Corp (6758) saw losses of 0.13% and 0.17%, respectively.

Check out our economic calendar for today’s economic events.