Asian Markets Bullish on Easing Restrictions & Tech Overhaul -29 March
29 Mar 2023
Hang Seng Leads on Alibaba News.
It was a bullish morning for the Asian equity markets, with the Hang Seng Index leading the way in the hopes of easing market restrictions in China.
- The Hang Seng Index led the way on an optimistic Wednesday morning for the Asian markets.
- Jack Ma’s return to China and Alibaba Group Holding’s plans for an overhaul helped support tech equities and the larger Asian markets.
- Bets on an RBA rate pause in April were fuelled by economic data from Australia, and BoJ Deputy Governor Uchida also made the news.
It was a bullish morning for the Asian markets. The Hang Seng Index was in breakout mode, with the ASX 200 and Nikkei 225 finding support.
News of Alibaba Group Holdings Ltd planning to split into six entities drove demand for tech stocks. Market bets on easing market restrictions in China supported the bullish morning session.
Jack Ma’s return to China further evidenced Chinese regulators planning to ease restrictions.
US economic indicators from Tuesday were also market-friendly, with consumer confidence unexpectedly improving in March. The CB Consumer Confidence increased from 103.4 to 104.2, the upswing coming despite the Fed’s push to bring inflation under control.
The Hang Seng was up 1.91% this morning. News of Alibaba planning for an overhaul supported a bullish morning session.
The move was seen as overly positive by investors, in hopes that it could attract lesser regulatory scrutiny, and generate more future returns given that the six units represent Alibaba’s largest money-makers.
Considering the main components, Tencent Holdings Ltd (HK:0700) rose by 2.27%, with Alibaba Group Holding Ltd (HK:9988) surging by 13.29%.
However, it was a mixed morning for banking stocks. HSBC Holdings PLC fell by 0.57%, while China Construction Bank (HK: 0939) and Industrial and Commercial Bank of China (HK:1398) rose by 0.59% and 1.18%, respectively.
HANG SENG TECHNICAL ANALYSIS DAILY CHART:
- Hang Seng is currently trading in the up channel.
- Hang Seng is currently trading above 5&20 SMA.
- RSI is in buying zone which suggests bullishness and Stochastic suggests an up trend.
- Immediate resistance is at 20519 & its immediate support level is 20164.
HOW TO TRADE HANG SENG IN THIS WEEK
The Hang Seng is presently trading higher; it broke its previous day’s high, and if it continues to trade above the resistance level, further gains may be possible.