Hang Seng Hang Seng Index: Trump’s Nervous Matters – Asian Market Weekly Review

Hang Seng Index extended its losing streak to four weeks, falling 0.41%. Rising odds of a Trump victory on November 5 and a rout in the tech sector have left Hang Sen in negative territory.

US election polls showed Trump closing the gap with Kamala Harris, boosting Trump’s chances of returning to the White House. Markets expect Trump to target Chinese goods with punitive tariffs, potentially impacting the country’s economy.

The technology sector struggled along with the Nasdaq, with the Hang Seng Tech Index (HSTECH) ending the week down 1.19%. Tech giants Alibaba (9988) and Tencent (0700) were down 0.37% and 0.36%, respectively, while Baidu (9888) rose 1.49%.

Meanwhile, real estate stocks rose on sentiment over China’s policy measures. The Hang Seng Mainland Properties Index (HMPI) rose 4.80%.

On the mainland, concerns over US tariffs overshadowed PMI readings and expectations for further policy announcements. The CSI 300 index fell 1.68% and the Shanghai Composite fell 0.84%.

Commodity markets: crude oil, iron ore and gold.

It was a mixed week on the commodity markets. Iron ore prices fell 2.72% over the week. Gold also trended lower, falling 0.41% despite hitting an all-time high of $2,790.

However, WTI crude ended the week higher as investors mulled conflict in the Middle East.

ASX 200 extends previous week’s losses

The ASX 200 Index was down 1.13% for the week ending November 1, after falling 0.87% on the previous week. Falling gold prices and the Fed’s December rate cut (prior to the US jobs report) have weighed on demand for ASX 200-listed shares.

Demand for high-yielding Australian banking shares has weakened as US Treasury yields have risen. National Australia Bank (NAB) and ANZ (ANZ) ended the week down 1.90% and 2.02% respectively.

Shares of Northern Star Resources Ltd. (NST) linked to gold fell 3.88% as gold prices fell.

Nikkei advances amid political deadlock

For the week ending November 1, the Nikkei index gained 0.37%. The results of the general election in Japan affected the demand for the Japanese yen, leading to a rise in stocks listed on the Nikkei index. The Liberal Democratic Party (LDP)-Komeito coalition fell short of a majority, raising doubts about a short-term rate hike by the Bank of Japan.

Despite the impact of the election results on the yen, the Bank of Japan’s aggressive stance supported demand for the yen, leading to modest gains in the Nikkei. dollar/yen increased by 0.45% over the week.

Among the notable leaders of the movement were shares of SoftBank Group Corp. (9984), which rose 2.43% despite falling 5.62% on Friday. Nissan Motor Corp. shares (7201) added 1.59%. However, shares of Tokyo Electron (8035) fell 3.17%.

Prospects

Looking ahead, key events, including the RBA’s interest rate decision, the US presidential election and the upcoming meeting of the National People’s Congress Standing Committee (NPCSC), will influence market sentiment towards risk.

Further stimulus from Beijing could spur demand for riskier assets. But the central bank’s hawkish stance and Trump’s victory could overshadow Beijing’s policies.

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