Hang Seng Index, ASX200, Nikkei 225: US CPI Report Weighs on Sentiment

The Market Overview

The Hang Seng Index and the larger Asian markets had a gloomy morning session. This morning's market risk sentiment was affected by the US CPI Report for January. Investors would have hoped for softer-than-expected results despite the fact that US inflation eased in order to lessen the possibility that the Fed would raise interest rates over 5%.

The annual inflation rate in the US decreased in January from 6.5% to 6.4% compared to an anticipated 6.2%, confirming the hawkish view for interest rates.

The NASDAQ Composite Index increased on Monday while the Dow decreased by 0.46%.

Geopolitical tensions between the US and China added to the negative Hang Seng session despite the absence of any regional economic signs to divert investors.

Advertisement

ASX 200

The ASX 200 was down this morning by 1.22%. Australian economic data were not available to influence market sentiment. RBA remarks, however, once again hurt the ASX 200.

RBA Governor Philip Lowe addressed members of parliament after last week's aggressive RBA Rate and Monetary Policy Statements, outlining the catastrophic repercussions of failing to control inflation.

Reuters quotes Lowe as saying, "The current inflation rate of 7.8% is much too high. It must be taken down. We are most concerned about it.

The ASX 200 fell as the US CPI report came in hotter than anticipated and the RBA said that it will fight inflation.

Bank stock prices saw a down day this morning. CBA and WBC both had declines of 5.78% and 4.48%, respectively. NAB and ANZ Group both had declines of 3.95% and 3.61%, respectively.

Small assistance came from mining stocks. Fortescue Metals Group (FMG) fell by 0.47%, while Rio Tinto (RIO) and BHP Group Ltd (BHP) both had increases of 1.05% and 0.11%, respectively. Newcrest Mining (NCM) also had a decline, dropping by 1.11%.

Woodside Energy Group (WDS) and Santos Ltd (STO), which were down 2.32% and 0.70%, respectively, were affected by a decline in crude oil prices. WTI fell 0.52% this morning to $78.65.

HONG SEN GOLD INDEX

Market response to the US CPI Report and the deterioration of US-China ties caused the Hang Seng to fall 1.28% this morning.

Tencent Holdings Ltd. (HK:0700) down 1.48%, while Alibaba Group Holding Ltd. (HK:9988) fell 2.15%.

Industrial and Commercial Bank of China (HK: 9988), China Construction Bank (HK: 0939), and HSBC Holdings PLC all saw declines in their respective bank stock prices.