Meanwhile, Australia’s ASX 200 Index extended its gains from Monday, rising 0.24%. Banking and oil stocks contributed to the gains, while losses in gold and mining stocks limited the upside.
Softer-than-expected US economic data boosted demand for high-yield Australian bank shares. Commonwealth Bank of Australia gained 0.28%, while National Australia Bank rose 0.67%. However, rising bets on an RBA rate cut in February limited gains. Lower interest rates could impact banks’ net interest margins (NIM) and profits.
However, iron ore futures suffered a six-day losing streak, putting pressure on mining stocks. BHP Group Ltd. (BHP) and Rio Tinto Ltd. (RIO) fell by 0.43% and 0.84% respectively.
Outlook
Volatility may persist as markets approach the holiday season. Crucial events, including the Bank of Japan’s Summary of Opinions, China’s stimulus updates and US tariff developments, are likely to influence sentiment. Traders must remain attuned to global economic trends and trade dynamics to navigate changing market conditions.
For an in-depth analysis of the Hang Seng Index and global market trends, click here.