Investment Insights

Latest Market Focus

AUD benefits from high rates, energy, and AI strengths (Chinese Only)

CIO Viewpoints

A-shares and Renminbi strengthened simultaneously, what's next?

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Focus of the Day

  • Nikkei 225 jumps after the holiday break

Other Commentaries

  • Trump may visit China with business delegation; China extends gold purchases to an 18th straight month; Mainland May Day travel data disappoints expectations

Market Analysis

FX Markets Analysis

Latest Technical Highlights

JPY - Uptrend↗

Support / Resistance

vs HKD 4.9563 / 5.1520

vs USD 152.00 / 158.00

Japan’s top currency official, Atsushi Mimura, said on Thursday that Japan faces no constraints on how often it may intervene in FX markets and remains in daily contact with US counterparts. US Treasury Secretary Bessent will visit Tokyo next week, expected to discuss yen moves with Japan’s finance minister

 

Legends

Uptrend ↗  Sideways →  Downtrend ↘

*Pertaining to historical technical trend analysis only and do not reflect any forecasts or any forward looking views

Provided by Hang Seng Investment Services Limited

Stock Markets View

  • US 1Q GDP picked up QoQ but fell short of expectations. Semiconductor strength helped push the S&P 500 to fresh highs. The “Magnificent Seven” broadly beat earnings forecasts, though share price reactions were mixed
  • Corporate results have been uneven. With the ECB and the Bank of England flagging rising near-term inflation risks, renewed rate-hike concerns could keep European equities choppy
  • The AI upcycle may continue to underpin South Korea and Taiwan. However, elevated oil prices could pressure energy-importing markets such as India and parts of ASEAN, leaving regional performance differentiated
  • US–Iran talks have yet to produce concrete outcomes and remain a key watch item. If Middle East tensions ease—reducing risk aversion—alongside a softer US dollar, flows into emerging markets could improve
  • Attention is on Mainland spending during the Labour Day holiday and President Trump’s planned mid-May China visit. Strong A-shares performance and active turnover ahead of the holiday, have supported near-term Hong Kong sentiment
Legends

Positive - Expect that the particular asset class potentially may perform well relative to the relevant major global benchmark(s) in the long run
Neutral - Expect that the particular asset class potentially may perform in line relative to the relevant major global benchmark(s) in the long run
Cautious - Expect that the particular asset class potentially may not perform well or in line relative to the relevant major global benchmark(s) in the long run

Provided by Hang Seng Investment Services Limited

Bond Markets View

  • With no fresh round of US–Iran negotiations, oil prices have continued to rise, weighing on US Treasuries. Treasury yields are likely to remain volatile in the near term
  • As of 1 May, US Treasury yields rose week-on-week, extending declines in US investment-grade credit. Markets remain focused on US corporate earnings releases
  • Mainland China’s 1Q industrial profits rose 15.5%, suggesting that efforts to reduce excess capacity and address disorderly competition are gaining traction—supportive for relevant issuers
  • Year-to-date through April, energy has led high-yield performance, while spreads are near their tightest levels in roughly two decades
  • Macau recorded 444,000 inbound arrivals over the first two days of the Labour Day holiday, above expectations. Robust visitor volumes may continue to support related issuers
  • Improving ceasefire sentiment around the US–Iran situation supported further gains in Middle East bonds in April. That said, any renewed negotiation headlines could keep the region volatile
Legends

Positive - Expect that the particular asset class potentially may perform well relative to the relevant major global benchmark(s) in the long run
Neutral - Expect that the particular asset class potentially may perform in line relative to the relevant major global benchmark(s) in the long run
Cautious - Expect that the particular asset class potentially may not perform well or in line relative to the relevant major global benchmark(s) in the long run

Provided by Hang Seng Investment Services Limited

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