The Hang Seng Index dropped 1.13% in the week ending March 21, following the previous week’s 1.12% loss. Significantly, the Index had climbed to its highest level since November 2021 before hitting the reverse.
US tariff uncertainty and Beijing’s silence on fresh stimulus measures contributed to the losses. Additionally, a Bank of America report warning of a potential market correction triggered Thursday and Friday’s sharp sell-off. Real estate and tech stocks dragged the Index into negative territory. Key movers included:
- The Hang Seng Mainland Properties Index slid by 3.56%.
- The Hang Seng Technologies Index tumbled 4.10%.
- Tech giants Alibaba (09988) and Tencent (00700) posted weekly losses of 3.76% and 2.42%, respectively, while Baidu (09888) slipped by 0.22%.
Mainland China’s equity markets also retreated, with the CSI 300 and Shanghai Composite Index falling 2.29% and 1.60%, respectively.
Brian Tycangco, editor and analyst at Stansberry Research, remarked on market speculation:
“Some are saying China’s bull market is in danger of ending because of risks that stimulus will disappoint. Well, I don’t think so. PBoC has plenty of room to stimulate if the need arises. And I’ve noticed that they are more sensitive to market developments these days than they were 5 to 10 years ago.”
For more analysis on the Hang Seng Index and global market trends, click here.
Commodities: Gold Hits Record High; Iron Ore Extends Losing Streak
Commodity markets had a mixed week as investors considered Trump’s tariff plans, Beijing’s stimulus outlook, Middle East tensions, and the Fed’s policy outlook.
- Gold gained 1.30% in the week ending March 21, climbing to a record high of $3,058 before pulling back and closing the week at $3,023. Safe haven demand and the Fed’s policy outlook drove prices higher.
- WTI crude oil prices advanced 1.02%, closing the week at $68.28.
- Iron ore prices declined by 1.82%, extending the losing streak to four weeks on tariff and demand concerns.
ASX 200 Mirrors Wall Street, Snaps Four-Week Losing Streak
The ASX 200 advanced by 1.82% in the week ending March 21, snapping a four-week losing streak. Banking, gold, and tech stocks led the gains.
- Banking sector: Falling 10-year US Treasury yields drove demand for high-yielding Aussie banks. ANZ (ANZ) and Westpac Banking Corp jumped 3.57% and 3.82%, respectively.
- Gold sector: Northern Star Resources Ltd. (NST) posted a 1.90% weekly gain.
- Tech Sector: The S&P/ASX All Technology Index rallied 1.84%.
Nikkei Index Rallies on Softer Inflation and Yen Weakness
Japan’s Inflation numbers and the outcome of the spring wage negotiations (Shunto) eased bets on a July Bank of Japan rate hike. Despite the dovish Fed stance, the USD/JPY gained 0.45% to close the week at 149.291. A softer Yen boosts the competitiveness of Japanese exports, improving corporate earnings prospects.
- Sony Corp. (6758) was among the front-runners, soaring 7.5% on the weaker Yen.
- Tech stocks advanced on Wall Street’s gains. Tokyo Electron (8035) soared 4.12%, while Softbank Group (9984) rose 1.58%.
Market Outlook: Key Events to Watch
The upcoming week will be crucial for Asian markets as economic data, central bank actions, and tariff developments shape investor sentiment. Key events include:
- US Tariffs: Trump’s shifting stance remains a key risk factor for global markets. Any further policy shifts will influence investor sentiment.
- Beijing Stimulus: Stimulus measures, aimed at boosting domestic consumption, could mitigate tariff risks, supporting demand for HK and Mainland-listed stocks.
With economic uncertainty and market volatility persisting, traders should closely monitor global macroeconomic trends and policy shifts here to navigate risks effectively.
