ASIA-PAC EQUITY UPDATE: Asian stocks mostly shrugged off weak US lead as trade picked up from the holiday lull, while USD/JPY breached 128.00

Analysis details (06:04)

Asia-Pac bourses mostly shrugged off the uninspired lead from Wall St and US equity futures were also marginally higher overnight as more markets reopened and trade picked up from the holiday lull. ASX 200 (+0.6%) gained on return from a four-day closure with the index led higher by strength in commodity-related industries and the top-weighted financials. Nikkei 225 (+0.7%) briefly reclaimed the 27k level as the continued currency depreciation (USD/JPY rose above 128.00) underscored the Fed and BoJ policy divergence and despite the jawboning efforts by Japanese Finance Minister Suzuki who suggested the demerits from JPY weakening were greater than merits under current circumstances. Hang Seng (-1.8%) and Shanghai Comp. (+0.1%) were mixed with Hong Kong markets heavily pressured as they took their first opportunity to react to the PBoC’s underwhelming policy decisions last week and with tech names hit after Shanghai's market regulator summoned 12 e-commerce platforms including Meituan on price gouging during COVID outbreaks. Conversely, the mainland was indecisive as participants mulled over the latest virus-related developments including an increase in Shanghai deaths and the lockdown of five districts in the steel-producing hub of Tangshan, although policy support pledges from Chinese authorities including the PBoC and NDRC ultimately provided a cushion.

19 Apr 2022 - 06:05- Fixed IncomeResearch Sheet- Source: Newsquawk