Index update: Analysis For Hang Seng, Nikkei 225, ASX, NASDAQ

Key Points:

1. Hang Seng retreats as Chinese banks cut lending rates.
2. Nikkei 225 was mostly flat in quiet trading.
3. ASX gained ground, supported by rising commodity markets.
4. NASDAQ pulled back on profit-taking.

Hang Seng Index

The Hang Seng Index is a stock market index that tracks the performance of the largest and most liquid companies listed on the Hong Kong Stock Exchange. It is often seen as a barometer of the Hong Kong economy and, more broadly, the Chinese economy.

The Hang Seng index declined as Chinese banks lowered lending rates to support the economy. The one-year Loan Prime Rate dropped from 3.35% to 3.10%, slightly below the analyst consensus of 3.15%. Similarly, the five-year Loan Prime Rate fell from 3.85% to 3.60%, also coming in under the forecast of 3.65%. Set by major Chinese banks, the Loan Prime Rate significantly influences the country’s economic landscape. However, traders remain concerned that the Chinese economy may continue to weaken despite these measures to stimulate demand, which is negatively impacting the Hang Seng.

If the Hang Seng settles below the 20,500 mark, it may test the nearest support level between 19,700 and 19,800.

Nikkei 225

The Nikkei 225 is a stock market index for the Tokyo Stock Exchange, comprising 225 large, publicly-owned companies in Japan. It is one of the most widely followed indices in Asia and a key indicator of the Japanese economy.

The Nikkei 225 remained largely unchanged as traders anticipated stronger catalysts. With no major economic reports due for release in Japan today, market participants concentrated on overall sentiment.

The technical outlook remains stable, with the Nikkei 225 trading within a range defined by support at 37,800–38,000 and resistance at 39,400–39,500.

ASX

The ASX is the primary stock exchange in Australia, where shares of publicly traded companies are bought and sold. It encompasses various sectors, including finance, mining, and technology.

ASX received support in the 8260 – 8285 range and gained additional upside momentum. The rebound in the mining sector, which was driven by the strong performance of commodity markets, provided material support to ASX.

In case ASX settles above the 8350 level, it will head towards the 8400 level. On the support side, a move below the support at 8260 – 8285 will open the way to the test of the next support level at 8090 – 8110.

NASDAQ

The NASDAQ Composite is a stock market index that includes over 3,000 stocks listed on the NASDAQ stock exchange, primarily technology and internet-based companies. It is known for its high concentration of tech stocks.

The NASDAQ experienced a pullback as traders cashed in on profits following a recent rebound. While demand for tech stocks remains robust, the index may require further positive catalysts to approach the nearest resistance level at 20,700–20,800.

On the support side, a successful test of the 20,000–20,100 range could lead the NASDAQ toward the next support level at 19,500–19,600.

Summary

The Hang Seng index faces downward pressure due to concerns about a slowing Chinese economy, with significant support at 19,700–19,800 if it falls below 20,500.

The Nikkei 225 remains flat, trapped between support at 37,800–38,000 and resistance at 39,400–39,500, as traders await stronger economic catalysts.

The ASX's performance is heavily influenced by commodity prices, particularly from China, making it vital for assessing Australia’s economic outlook.

Meanwhile, the NASDAQ has pulled back as traders took profits, indicating caution in the tech sector. Its ability to approach resistance at 20,700–20,800 will depend on forthcoming economic data.

Overall, each index reflects key regional economic trends, with support and resistance levels critical for future trading strategies.

When considering shares, indices, forex (foreign exchange) and commodities for trading and price predictions, remember that trading CFDs involves a significant degree of risk and could result in capital loss.

Past performance is not indicative of any future results. This information is provided for informative purposes only and should not be construed to be investment advice.