ASIA-PAC EQUITY UPDATE: Asia stocks were choppy with sentiment clouded by geopolitical uncertainty and higher oil prices, while China contends with COVID

Analysis details (06:04)

Asia-Pac stocks trade were choppy as the region failed to take impetus from last Friday’s momentum on Wall St where stocks shrugged off the initial quad witching jitters and extended on gains in which the S&P 500 topped off its best weekly performance since November 2020. Indecision in Asia came amid the uncertain geopolitical climate with Russia issuing an ultimatum for Ukraine to surrender Mariupol which was rejected and with oil prices climbing after several Houthi attacks on Aramco facilities, while Japanese participants were also away for holiday. ASX 200 (-0.2%) was indecisive with outperformance in tech offset by losses in the top-weighted financials sector and following the recent state election defeat in South Australia for Australian PM Morrison’s Liberal Party which raised concerns for the federal government ahead of the federal election to be held within two months. KOSPI (-0.8%) was subdued amid ongoing COVID-19 concerns and with time running out for the appointment of the next BoK Governor with IMF Director Rhee speculated as a nominee to replace Governor Lee who’s term ends this month. Hang Seng (-0.3%) and Shanghai Comp. (-1.1%) swung between gains and losses with an early surge in Hong Kong tech stocks ahead of a widely speculated relaxation to COVID restrictions after the city’s daily cases fell to a three-week low and with China’s tech hub of Shenzhen resuming normal work output. However, the gains were wiped out with the mainland hampered as Shanghai tussles with a COVID-19 outbreak, while the PBoC also kept its Loan Prime Rates unchanged, as expected.

21 Mar 2022 - 06:01- EnergyGeopolitical- Source: Newsquawk