Nikkei and ASX 200 see modest gains amid easing US recession fears
The Nikkei 225 and ASX 200 indices registered modest gains on Tuesday, October 24, 2023, as easing US economic recession fears and a pullback in 10-year US Treasury yields from a high of 5.021% bolstered market sentiment. Despite concerns over yield spikes, Middle East conflict, weaker Purchasing Managers Index (PMI) figures from Australia and Japan, and a negative impact on tech stocks, these factors did not significantly impact the two indices.
Corporate earnings from Alphabet (NASDAQ: GOOGL), Coca-Cola (NYSE: KO), General Electric (NYSE: GE), General Motors (NYSE: GM), Microsoft (NASDAQ: MSFT), and Visa (NYSE: V) set a positive tone for Wednesday’s session. Additionally, the release of Australian inflation figures for Q3 could potentially influence Reserve Bank of Australia’s rate hike expectations.
The ASX 200 gained 0.19% on Tuesday. Despite a drop in tech stocks by 0.44%, mining stocks steadied after Monday’s sell-off with Fortescue Metals Group (OTC: FSUGY) rallying by 2.59%. The big four banks had a mixed session.
On the other hand, the Nikkei gained by 0.20%. While bank stocks saw more losses, SoftBank (TYO:9984) Group Corp. and Fast Retailing Co. registered gains of 1.68% and 1.74% respectively
In contrast to the positive performance of the Nikkei and ASX 200, the Hang Seng Index ended negatively on Tuesday, falling by 1.05%. Major tech companies Alibaba (NYSE: BABA) Group Holding Ltd and Tencent Holdings (OTC: TCEHY) Ltd slid by 1.66% and 2.08% respectively, while bank stocks also ended negatively.