Grasp Seng Index Hits Six-Week Streak on Earnings and Stimulus Hopes – Weekly Recap…

The Grasp Seng Index rallied three.79%, extending its successful streak to a powerful six weeks, the longest since 2019. Traders shrugged off commerce warfare jitters, specializing in Beijing’s stimulus pledges and company earnings.

Tech shares led the beneficial properties:

• The Grasp Seng Tech Index surged 6.03% within the week, additionally extending its successful streak to 6 weeks.
• Alibaba (9988) soared 11.60% after beating income forecasts.
• Tencent (0700) gained 9.12% for the week.

Nevertheless, Baidu (9888) slid by 7.30% within the week. Traders reacted to Baidu’s absence from Beijing’s Symposium and a decline in quarterly income.

Mainland China’s fairness markets superior regardless of ongoing US tariff threats. Hopes of contemporary stimulus measures to spice up home consumption mitigated commerce warfare dangers. The CSI 300 and Shanghai Composite Index rose 1% and zero.97% for the week ending February 21.

For extra evaluation on the Grasp Seng Index and international market traits, click on right here.

Commodities: Gold Hovers Under $three,000; Iron Ore Rebounds

Commodities noticed blended efficiency throughout the week ending February 21:

• Gold prolonged its successful streak to eight weeks, gaining 1.85% to shut at $2,936. Considerably, gold struck a brand new report excessive of $2,955 earlier than easing again.
• Iron ore spot recovered losses from the earlier week, rising four.25% to $821.64.
• Crude oil ended the week down at $70.557 after sliding three.39% on February 21 as buyers fretted a few potential US financial slowdown.

ASX 200 Slides Amid Weak Financial institution Earnings and RBA Warning

The ASX 200 slid by three.03% within the week. A much less dovish-than-expected RBA outlook pressured Aussie shares. Banking shares have been hit arduous after disappointing earnings from main lenders.

• The Commonwealth Financial institution of Australia (CBA) slid by eight.29%.
• Nationwide Australia Financial institution (NAB) plunged 14.42%.
• Westpac Banking Corp. (WBC) tumbled 10.60%.

Nevertheless, rising iron ore costs offered reduction to mining shares. BHP Group Ltd. (BHP) and Rio Tinto Ltd. (RIO) gained zero.83% and 1.91%, respectively.

Nikkei Index Slips on BoJ Price Hike Bets and Yen Energy

The Nikkei Index ended the week down zero.81%, pressured by the USD/JPY pair falling 2.01% to 140.226. A stronger Japanese Yen might negatively have an effect on abroad earnings and company valuations, particularly for exporters.

The Yen strengthened amid rising expectations of a Financial institution of Japan charge hike. Upbeat This fall GDP information, a pickup in inflationary pressures, and companies sector exercise fueled hypothesis a few extra hawkish BoJ charge path.

Softbank Group Ltd. (9984) dropped by 2.56%, whereas Sony Corp. (6758) and Nissan Motor Corp. (7201) ended the week up 2.91% and seven.78%, respectively. Studies recommended that Nissan is contemplating attracting Tesla (TSLA) as an investor.

Market Outlook: Key Occasions to Watch

The upcoming week may very well be essential for Asian markets. Financial information, geopolitics, and US tariff developments shall be focal factors. Key themes to observe embody:

• US tariff coverage: Progress towards sweeping US tariffs would affect threat sentiment, whereas de-escalation might set off market reduction.
• China stimulus-related information: Stimulus measures concentrating on consumption might enhance demand for Hong Kong and Mainland China-listed shares. An absence of stimulus might check purchaser urge for food.
• Central Financial institution ahead steerage: Hawkish commentary might strain Asian markets, with the BoJ in focus.
• USD/JPY traits: A pointy drop within the USD/JPY might set off a Yen carry commerce unwind, affecting broader market threat urge for food.

Merchants ought to keep attuned to evolving macroeconomic dynamics to navigate shifting market situations.