ASIA-PAC EQUITY UPDATE: Asian stocks were mostly lower after the Credit Suisse turmoil stoked banking sector fears, although markets found some relief after SNB offered support with Credit Suisse intending to borrow up to CHF 50bln

Analysis details (06:03)

Asia-Pac stocks were mostly lower as the region followed suit to the losses seen in global peers after the recent Credit Suisse turmoil added to the ongoing banking sector fears. However, the major indices were off worse levels and US equity futures nursed some of the prior day’s losses after Swiss authorities attempted to soothe market concerns and Credit Suisse later announced it will take decisive action to strengthen its liquidity including borrowing up to CHF 50bln from the central bank. ASX 200 (-1.5%) was dragged lower by weakness in financials and underperformance of the commodity-related sectors with energy stocks hit after oil prices slumped to their lowest in more than a year, although the index finished off its lows after the stronger-than-expected employment data. Nikkei 225 (-1.0%) dipped below the 27,000 level for the first time since January amid the banking sector jitters and geopolitical concerns after North Korea fired a suspected ICBM ahead of a leadership summit between Japan and South Korea. Nonetheless, Japanese stocks have clawed back some of their losses as participants also digested mixed data releases in which Machinery Orders topped forecast with a surprise expansion Y/Y, while Exports growth missed but still accelerated from the prior month. Hang Seng (-1.5%) and Shanghai Comp. (-0.7%) conformed to the downbeat mood amid frictions with the US which threatened to ban TikTok if its Chinese founder doesn't sell an ownership stake, although the downside was stemmed in the mainland after the central bank’s continued liquidity efforts.

16 Mar 2023 - 05:58- Fixed IncomeResearch Sheet- Source: Newsquawk