ASIA-PAC EQUITY UPDATE: Asia-Pac stocks traded mixed with financials hit amid the fallout from the SVB and Signature Bank collapse, although US equity futures surged after US efforts to increase confidence in the banking system and guaranteed deposits

Analysis details (05:59)

Asia-Pac stocks traded mixed with financials hit amid the fallout from the SVB collapse and subsequent failure of Signature Bank, although US equity futures were supported following efforts to stabilise the financial system with bank deposits guaranteed and the Fed announced to make additional funding available to eligible depository institutions to assure that banks have the ability to meet the needs of their depositors. ASX 200 (-0.5%) was lower with weakness seen across most industries including the top-weighted financials sector although closed off its lows owing to the resilience in commodity-related stocks and with money market rates pricing in over 75% probability of a pause at next month’s meeting. Nikkei 225 (-1.1%) suffered losses and retreated back beneath the 28,000 level with financial stocks dominating the list of worst performers. Hang Seng (+1.9%) and Shanghai Comp. (+0.7%) were positive with Hong Kong boosted by strength in the tech industry after Chinese President Xi advocated strengthening science and technology at the closing remarks of the NPC and with Bilibili boosted following the inclusion of its Z shares to the Stock Connect, while the mainland was also kept afloat after China reported stronger-than-expected loans/financing data and surprisingly retained PBoC Governor Yi Gang at the head of the central bank.

13 Mar 2023 - 05:56- Research Sheet- Source: Newsquawk