HSI 061024 daily chart
In the week ended October 4, the Hang Seng Index rose 10.20%, following a 13% rise in the previous week. Beijing’s stimulus efforts countered expectations that the Fed’s interest rate path would become less dovish and the escalation of conflict in the Middle East.
Real estate and tech sector stocks continued to benefit from changes in demand for Hong Kong and mainland-listed stocks.
The Hang Seng High-Tech Index (HSTECH) ended the week with a 17.38% gain, following a 20.23% rise in the previous week. Among the movers in tech stocks, Baidu (9888) and Alibaba (9988) rose 11.12% and 9.84%, respectively, while Tencent (0700) rose 9.06%.
The Hang Seng Mainland Property Index (HMPI) increased by 16.39% this week, following 30.64% in the previous week. Rising real estate stocks include Longfor Group Holdings (0960) (+23.62%), Shimao Group Holdings (0813) (+137.78%), and Agile Group Holdings (3383) (+169.84). %) etc.
On Monday, September 30th, on the mainland, the CSI 300 rose 8.48%, and the Shanghai Composite rose 8.06%. Chinese markets were closed for the rest of this week due to National Day.
Commodity bifurcation amid geopolitical tensions
Iron ore prices continued to rise on expectations of increased demand due to China’s policy measures. Spot iron ore rose 6.71% in Monday trading ahead of the Chinese holiday.
Gold fell 0.18% to $2,653 in the week ending October 4, while oil prices rose due to escalating Middle East conflicts. US labor market data and a recovery in the US dollar pushed gold into negative territory.
ASX 200 risk avoidance slides
The ASX 200 index fell 0.76% in the week to October 4. A decline in bets on a 50 basis point Fed cut and the Middle East conflict kept the index in negative territory.
Australian banks in particular fell, with Westpac Banking Corporation (WBC) and ANZ (ANZ) suffering losses of 5.22% and 2.63% respectively. Expectations of a 50 basis point rate cut by the Federal Reserve have receded, reducing demand for high-yield stocks.
Mining stocks also contributed to weekly losses. BHP Group (BHP) and Rio Tinto (RIO) posted weekly losses of 0.36% and 2.96%, respectively. Risk aversion weighed on mining stocks as investors locked in last week’s gains.
However, oil stocks rose along with oil prices, with Woodside Energy Group (WDS) gaining 9.36%.
Nikkei Stock Average falls despite weak yen
The escalation of the Middle East conflict has affected demand for stocks listed on the Nikkei Stock Average. Despite USD/JPY surging 4.57%, the index fell 3% to end the week at 148.656.
Among notable stocks, Tokyo Electron (8035) fell by 7.72%, and Softbank (9984) fell by 5.85%. Nissan Motor Co. (7201) and Sony fell 3.22% and 3.29%, respectively.
outlook
As Chinese markets reopen after the National Day, traders should closely monitor news, real-time data, and expert commentary and adjust their trading strategies accordingly. Stay up to date with the latest news and analysis to manage your positions across Asian stock markets.