Hang Seng Index and ASX 200: Diverging Trends Amid Trade Tensions and Tech Gains

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ASX 200 051224 Daily chart

Meanwhile, Australia’s ASX 200 Index rose 0.33% on Thursday morning. Banking, gold and technology stocks offset losses in the mining sector. The S&P/ASX All Technology Index rose 1.10%, following the Nasdaq’s gains.

The Commonwealth Bank of Australia advanced 0.85% on positive Australian trade data that indicated a rebound in economic activity. Improving economic conditions could boost credit demand and bank profits. Australian exports recovered in October, rising 3.6% after falling 4.7% in September. Imports also improved, after a sharp decline in the previous month.

Northern Star Resources Ltd. (NST) advanced 1.05%, while gold gained on Wednesday.

Mining giants BHP Group Ltd. (BHP) and Rio Tinto Ltd. (RIO), however, showed a lower trend, influenced by falling iron ore prices. Spot iron ore prices fell 1.37% on Thursday morning. Concerns about the Chinese economy and a possible trade war indicate weaker demand for iron ore, which affects price developments.

Outlook

Investors should keep an eye on developments in Chinese stimulus policy, central bank updates and US trade relations. Positive news from Beijing could ease market jitters, while policy signals from the Fed, RBA and BoJ will remain important drivers.

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