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August 24th - According to a report from the U.S. Central Command on August 23rd, the U.S. guided-missile destroyer USS John Finn is currently sailing in the Arabian Sea, carrying out the U.S. maritime blockade mission against Iran. As of August 23rd, the U.S. military has ordered 70 merchant ships to change course, rendered 3 merchant ships immobile, and boarded and inspected 2 other merchant ships.On August 24, a 14-year-old Palestinian boy died after being shot by Israeli forces at a refugee camp near the West Bank city of Nablus. Separately, Palestinian health officials in the Gaza Strip stated that Israeli airstrikes on central and southern Gaza on August 23 resulted in at least two deaths and several injuries. Among the dead was a four-year-old child.According to the Washington Post, data from the U.S. Department of Defenses casualty statistics system shows that U.S. military casualties in the war with Iran have risen to 774, including 18 deaths and 756 injuries. Even during periods without large-scale combat, the Department of Defense has quietly added approximately 60 new injury records recently. A large number of the wounded suffered traumatic brain injuries from the blasts during attacks on U.S. bases in Jordan, Kuwait, Iraq, and Saudi Arabia.The Israeli Prime Ministers Office reported that Prime Minister Netanyahu and Defense Minister Katz held a security assessment meeting Sunday evening regarding the threat of drones, balloons, and kites being launched from the Gaza Strip into Israel. Israel warned Hamas that if such launches against Israel do not cease immediately, the Israel Defense Forces will intensify targeted strikes against those responsible.On August 24, according to Irans Mehr News Agency, Hassan Kashkawi, spokesman for the Iranian Parliaments National Security and Foreign Policy Committee, announced on Sunday that the committee had adopted Article 3 of the "Strategic Action Plan for Ensuring the Security and Development of the Strait of Hormuz." He stated, "According to this article, we will charge fees for the provision of maritime services, environmental services, fuel supplies in special circumstances, insurance, security, and other services." These fees will be collected from vessels of relevant countries authorized to pass through the Strait of Hormuz, paid in rials or other currencies designated by the Islamic Republic of Iran. He emphasized the importance of respecting the rights of littoral states along the Strait of Hormuz, stating, "We should not forget that international laws and regulations, in addition to recognizing freedom of navigation, also emphasize respect for the security and sovereignty of littoral states and the prevention of violations of these rights."

Hang Seng Index, ASX200, Nikkei 225: Hang Seng Index Rises

Skylar Shaw

Feb 23, 2023 16:19



It was a mixed Asian session as investors responded to the FOMC meeting minutes,, with the Hang Seng Index bucking the trend.

Market Overview

It was a mixed morning session, with the Hang Seng Index finding support.


While the FOMC meeting minutes were less hawkish than expected, the minutes highlighted the key themes that included well-above-target inflation and a very tight labor market. Since the FOMC meeting minutes, the US Jobs Report impressed, with service sector activity surging, according to the ISM survey, and retail sales rebounding.


Significantly, inflation remained sticky, raising bets of a more hawkish Fed policy outlook. With the US unemployment rate at 3.4%, an upward trend in wage growth will likely continue to push prices higher, another reason for the Fed to take a more aggressive interest rate trajectory.


There were no economic indicators from the region to distract investors this morning. Later today, US jobless claims and Q4 GDP numbers could fuel bets of a more hawkish Fed. An unexpected fall in jobless claims and upward GDP revisions would likely test buyer appetite. FOMC member chatter will also draw interest, with FOMC member Bostic speaking.


Today’s US stats precede tomorrow’s spending, personal income, and core PCE price index numbers that will also influence market sentiment toward the Fed.


Oil futures responded to the FOMC minutes, with WTI crude sliding to sub-$75 a barrel.


This morning, the Dow mini was up 87 points, with the NASDAQ mini gaining 103.50 points to deliver market support.

ASX 200

The ASX 200 was down 0.40%. Market sentiment toward Fed monetary policy left the ASX 200 in the red, with a hawkish RBA adding to the bearish mood.


Mining stocks took a hit this morning. Rio Tinto (RIO) and BHP Group Ltd (BHP) were down by 1.71% and 3.16%, respectively, with Fortescue Metals Group (FMG) fell by 0.48%. Newcrest Mining (NCM) was down by 0.49%.


The overnight slide in crude oil prices weighed on oil stocks. Woodside Energy Group (WDS) and Santos Ltd (STO) saw losses of 0.75% and 1.43%, respectively.


Bank stocks had a mixed morning. Commonwealth Bank of Australia (CBA) bucked the bearish trend rising by 0.66%. However, it was bearish for the rest of the big 4, with National Australia Bank (NAB) and Westpac Banking Corp (WBC) falling by 0.97% and 0.83%, respectively. ANZ Group (ANZ) was down by 0.88%.


On the earnings front, Rio Tinto released its full-year earnings results for 2022. Following the broader trend, Rio Tinto slashed its 2022 dividend to $4.92 per share versus $10.40 in 2021. However, Qantas Airways Ltd (QAN) tumbled by 6.65% despite impressive earnings. Qantas reported a record H12023 net profit of $1.428 million.

Hang Seng Index


The Hang Seng was up 0.54% this morning. The US Futures delivered morning support as investors look ahead to a busy US economic calendar.


Tencent Holdings Ltd (HK:0700) was up 0.96%, with Alibaba Group Holding Ltd (HK:9988) gaining 2.74%


It was a mixed morning for banking stocks. HSBC Holdings PLC fell by 1,24%, while China Construction Bank (HK: 0939) and Industrial and Commercial Bank of China (HK:1398) saw gains of 0.20% and 0.75%, respectively.


CNOOC (HK: 0883) struggled following the Wednesday pullback in crude oil prices, falling by 0.17%.

Nikkei 225

The Nikkei 225 was down 1.34% this morning, despite a weaker USD/JPY that hovered below the 135 handle.


SoftBank Group Corp. (9984) slid by 2.18%, with Tokyo Electron Ltd (8035) and Fast Retailing Co (9983) seeing losses of 1.70% and 1.83%, respectively. Sony Corp (6758) also struggled, falling by 2.03%, with KDDI Corp (9433) declining by 0.47%.