Highlights

During the early trade of Today (May 31st), the Hang Seng Composite Index regained yesterday’s  (30th- May) declines.
Traders dismissed gloomy PMI data from the Chinese mainland, which revealed a downturn in the production industry.
As rates on American 10-year Treasury bonds fell, the ASX 200 index, Nikkei Index 225, and Hang Seng Composite all rose.

The Hang Seng Index and other Asian indices reacted to American indicators of economic growth.

Yesterday’s American GDP data on Thurs boosted demand from buyers for risky investments beginning during the Fri  Asian market.

The United States economy expanded by 1.3 percent in quarter one the year 2024. Dropping after 3.4 percent in fourth quarter of 2023. Profits for corporations declined by $21.1 bn following rising by $133.5 bn in the fourth quarter of 2023. Spending by consumers likewise dropped, bolstering market expectations for a Sept U.S Fed interest rate decrease.

Financials & Stock market Fundamentals Overview

Ten-year US bond yields fell 0.22 percent to 4.540 percent on the morning of Friday.

United States economic statistics overshadowed the Chinese poor Manufacturers and Other industries PMI readings. Furthermore, the NBS Mfg PMI surprisingly dropped below 50.4 to 49.5 during May as well.

Nevertheless, futures for the US suggested market trepidation ahead of the widely expected U.S Personal Earnings & Expenses Census. Greater-than-projected inflation in the US and consumer income & expenditure data may undermine betting for a Sept Federal bank rate decrease.

This Friday, the DJIA- mini with S&P – mini fell 30 as well as eight percentage points. The Nasdaq-mini fell by fifty points as well.

The China equities were anticipated to close unchanged in the month of May. After a recovery over several-month record lows halted in the past few weeks.

Hong Kong’s equities, on the contrary hand, outperformed that morning, alongside the index of Hang Seng rising 1.3 percent. After speculators flocked to substantially undervalued major technology companies.

The Hang Composite also became consistently the region’s best-performing index in the month of May.  Rising more than 4 percent amid traders looked greater visibility into a possible China’s economy resurgence.

Nikkei 225 Index

The Nikkei 225 Composite advanced 0.43 percent in the early morning period. Even though the USDJPY fell 0.06 percent to 156.715 mark, it had little influence on investor interest in Nikkei-list of exporting equities.

Japanese data on the economy showed contradictory messages, putting the hopes of investors of a BoJ rates rise in 2024. Japan’s yearly rate of inflation rose from 1.8 percent to 2.2 percent, while retail sales increased by 1.2 percent in Apr. Nevertheless, the jobs vacancies with applied proportion declined by 1.28 – 1.26 in the month of April, while production from industries dropped by 0.1 percent.

The Softbank Holdings with Sony Corp. gained 1.91 percent and 1.34 percent, correspondingly. Fast Retailing Company. Limited. upward 1.11 percent, while KDDI Corporation. gained 0.26 percent.

Banking sector, energy, gold, and technology shares provide ASX 200 strength.

The ASX 200 index increased by 0.49 percent during Friday’s early period. The initial advances were driven by the banking, energy, gold, & technology sectors. The S&P-ASX* Overall Tech indices gained 0.26 percent.

Markets ignored a drop in US WTI oil prices, whereas a rise in yellow metal spot (XAUUSD) boosted interest from buyers for gold-specific equities. Bullion climbed 0.21 percent on Thursday afternoon, closing around $2,343 mark. The US WTI oil prices fell about 1.67 percent to $77.91 zone/barrel.

The Northern Star Holdings Limited. with Evolution Mines Limited (the EVN), both gold centric equities, rose 2.72 percent with 1.96 percent accordingly.

The stock of the Commonwealth Bank of Australia, also known as CBA, rose 0.76 percent. While Westpac Bank Corporation. gained 0.46 percent.

Short-Term (Daily) Technical Indicators & Signals