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Hang Seng Index futures closed up 0.3% at 25,118 points in overnight trading, a premium of 75 points.Greenland Resources stated that it has signed binding long-term agreements with several steel companies, including Outokumpu and SSAB.Amazon Web Services (AWS): xAIs Grok 4.6 model is now available on Amazon (AMZN.O) Bedrock platform.On September 22, Federal Reserve Chairman Mohamed Mussaleem stated on Monday that the Fed may need to further raise interest rates to curb inflation due to strong demand and the impact of commodity prices extending beyond the oil sector. He emphasized that the Fed should act sooner rather than later. Mussaleem stated, “Persistent demand and recurring supply pressures continue to exacerbate inflation risks. I believe that without further policy measures to curb inflation, it is likely that in 18 months, inflation will be significantly higher than our 2% target, rather than reaching it. I believe policy must impose meaningful constraints on inflation. This would allow the Fed to achieve its inflation target in about a year and a half, thus allowing time for tightening to have an impact on the economy.” He added, “Earlier, gradual tightening is more appropriate and less shocking to the economy than later, larger, and potentially more abrupt policy moves.” Mussaleem pointed out that inflation “is not a risk; it already exists,” and even after excluding the effects of oil and other supply-related factors, the underlying inflation rate could still be several percentage points higher than the Fed’s target and is “heading in the wrong direction.”As of the 2:30 closing bell, the main Shanghai gold futures contract fell 0.39%, the main Shanghai silver futures contract fell 0.70%, and the main SC crude oil futures contract fell 2.26%.

Hang Seng Index, ASX200, Nikkei 225: Hang Seng Trails on Growth Targets

Alice Wang

Mar 06, 2023 17:13

Market Overview

It was a bullish start to the week for the Asian markets, with the ASX 200 and Nikkei 225 on the move. However, the Hang Seng Index trailed the front runners, with revised growth targets from Beijing testing buyer appetite.

Economic indicators from the US and a shift in sentiment toward Fed monetary policy supported a bullish end to the week for the US markets. The ISM Non-Manufacturing PMI slipped from 55.2 to 55.1, indicating solid service sector activity and a sharp rise in hiring. In February, the ISM Non-Manufacturing Employment Index jumped from 50.0 to 54.0.


However, the numbers failed to fuel more aggressive Fed policy bets, with the talk of slow and steady rate hikes resonating.

Hawkish chatter from the weekend failed to weigh in risk sentiment this morning. On Saturday, FOMC Member Mary Daly spoke of lifting interest rates in 50-basis point increments to tackle inflation.

However, growth targets from Beijing pegged back the Hang Seng Index. China delivered a 5% growth target, below market expectations of 5.5%. The disappointing growth target weighed on the CSI 300, which fell by 0.56% this morning, bucking a bullish market trend.

There were no economic indicators from Asia to distract investors this morning. With US factory orders out later today, the focus will shift to the Fed and Fed Chair Powell’s testimony on Tuesday. A move to a more hawkish posture would catch the markets by surprise.

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