Hang Seng Index, Nikkei Index, ASX 200: HSI Eyes China PMIs and a Nine-Day Streak

US Equity Markets: US Jobs Report and ISM Services PMI

On Friday (May 3), the US Jobs Report and ISM Services PMI raised investor expectations of a September Fed rate cut.

Average hourly earnings increased 3.9% in April after rising 4.1% in March. Nonfarm payrolls rose by 175k after a 315k jump in March. Moreover, the ISM Services PMI declined from 51.4 to 49.4 in April.

The US equity markets reacted to the weaker-than-expected numbers.

On Friday (May 3), the Nasdaq Composite Index rallied by 1.99%. The Dow and the S&P 500 advanced by 1.18% and 1.26%, respectively. The US economic indicators and US equity market gains will likely set the tone for the Monday Asian session.

Asian Economic Calendar: Aussie Jobs and China Services in Focus

On Monday (May 6), economic indicators from Australia and China could influence buyer appetite for ASX 200 and Hang Seng Index-listed stocks.

ANZ-Indeed Job Ad numbers for April will draw investor attention. Better-than-expected numbers could fuel speculation about a more hawkish RBA stance on monetary policy. Economists forecast job ads to increase by 1.1% in April after falling by 1.0% in March.

However, service sector PMI numbers from China could impact market risk sentiment more. Economists forecast the Caixin Services PMI to slip from 52.7 to 52.5 in April. Better-than-expected figures would signal an improving macroeconomic environment and drive demand for riskier assets.

Beyond the economic calendar, investors should also consider corporate earnings. The Hang Seng Bank (HK0011), Westpac Banking (ASX: WBC), and Harvey Norman Holdings (ASX: HVN) are among the big names to release earnings results.

Commodities: Crude Oil, Gold, and Iron Ore

On Friday (May 3), gold spot (XAU/USD) fell by 0.09% to close the session at $2,301.74. WTI crude oil fell by 0.84%, ending the session at $78.11.

On the Singapore Futures Exchange, iron ore prices were up 0.48% on Monday (May 6). Iron ore spot fell by 0.68% on Friday (May 3).

The Futures Markets

On Monday (May 6), the ASX 200 was up 22 points. The Nikkei Index is closed on Monday for Children’s Day.

ASX 200

The ASX 200 gained 0.55% on Friday (May 3). Bank, mining, and tech stocks contributed to the gains, with the S&P/ASX All Tech Index rallying 1.48%.

ANZ Group Holdings Ltd. (ANZ) and Westpac Banking Corp. (WBC) advanced by 0.89% and 1.50%, respectively. Commonwealth Bank of Australia (CBA) and National Australia Bank Ltd. (NAB) rose by 0.20% and 0.35%, respectively.

BHP Group Ltd (BHP) and Rio Tinto Group Lld. (RIO) ended the day up 0.07% and 0.11%, respectively. Fortescue Metals Group Ltd. (FMG) gained 0.35%.

However, gold-related stocks limited the upside, with oil stocks having a mixed session.

Gold-related stocks Northern Star Resources Ltd. (NST) and Evolution Mining Ltd (EVN) ended the day with losses of 1.65% and 5.57%, respectively.

Woodside Energy Group Ltd (WDS) rose by 0.50%, while Santos Ltd (STO) closed the session flat.

Hang Seng Index

The Hang Seng Index gained 1.48% on Friday (May 3). Real estate and tech stocks contributed to the positive session. The Hang Seng Mainland Properties Index (HSMPI) and Hang Seng Tech Index (HSTECH) advanced by 2.18% and 2.74%, respectively.

Alibaba (9988) jumped 4.07%, with Tencent (0700) rising by 1.11%.

Bank stocks also had a positive session. HSBC (0005) advanced by 0.14%. China Construction Bank (0939) and Industrial Commercial Bank (1398) saw gains of 0.97% and 1.18%, respectively.

The Nikkei 225

(Graph for reference purposes only)

There was no trading in the Japanese markets on Friday, with the markets closed for Constitution Day.

For upcoming economic events, refer to our economic calendar.