Hang Seng Index Tumbles 6.5% on China’s Stimulus News – Asian Market Weekly Recap…

In the week ending October 11, the Hang Seng Index tumbled by 6.53%, partially reversing gains of 10.20% from the previous week.

Real estate and tech sector-related stocks suffered heavy losses, leaving the Hang Seng in negative territory. The Hang Seng Tech Index (HSTECH) ended the week down 9.39%, while the Hang Seng Mainland Properties Index (HMPI) tumbled by 14.07%.

Leading tech names, including Baidu (9888) and Alibaba (9988), slid by 8.60% and 7.11%, respectively, while Tencent (0700) declined by 7.89%.

From the real estate sector, Longfor Group Holdings Ltd. (0960) (-21.11%), Shimao Group Holdings Ltd. (0813) (-19.63%), and Agile Group Holdings Ltd. (3383) (-34.71%) saw sharper losses.

On the Mainland, the CSI 300 fell by 3.25%, while the Shanghai Composite ended the week down 3.53%, impacted by sentiment toward Beijing’s stimulus measures.

Commodities Reflect China Worries

Disappointment over China’s policy measures pressured iron ore prices lower. Iron ore spot ended the week down 2.52%. Concerns about Beijing’s stimulus measures impacted demand expectations.

However, gold advanced by 0.14% to $2,657.03 on investor hopes for multiple Q4 2024 Fed rate cuts.

ASX 200 Gains Amid US Optimism

The ASX 200 advanced by 0.79% in the week ending October 11. Sentiment toward the Fed rate path drove demand for rate-sensitive ASX 200-listed stocks.

The S&P/ASX All Technology Index gained 2.90%, with banking stocks also trending higher. ANZ (ANZ) and National Australia Bank (NAB) ended the week up 2.53% and 2.33%, respectively. Bets on multiple Q4 2024 Fed rate cuts drove demand for the high-yielding bank stocks.

However, sliding iron ore prices impacted demand for mining stocks. BHP Group Ltd. (BHP) and Rio Tinto Ltd. (RIO) saw declines of 2.58% and 3.32%, respectively. Rio Tinto Ltd.’s share price fell despite acquiring Arcadium Lithium (LTM) for $6.7 billion.

Nikkei Index Rallies on Yen Trends

A weaker Japanese Yen drove demand for Nikkei Index-listed stocks. In the week ending October 11, the Nikkei Index rallied 2.51% as the USD/JPY gained 0.29%, closing the week at 149.080.

Notable stock movers included Softbank (9984), which gained 4.59%, with Fast Retailing Co. Ltd. (9983) surging by 10.73%. Sony Corp. advanced by 1.73%.

Outlook

Investors should consider economic indicators and policy measures from the weekend. Investor reaction toward a lack of fresh policy measures from China and September’s inflation figures could test demand for HK and Mainland-listed stocks. Stay informed with our latest news and analysis to manage positions across the Asian equity markets.