ASIA-PAC EQUITY WRAP: Asia-Pac stocks traded mixed as the region digested a slew of earnings and US-China frictions

Analysis details (06:03)

Asia-Pac equity markets traded mixed after failing to sustain the early momentum from the firm handover from Wall St where the Nasdaq led the advances amid a tech/growth bias, with participants digesting another deluge of earnings updates and continued US-China frictions. ASX 200 (+0.3%) was just about kept afloat as financials provided support after both AMP and NAB reported higher H1 profits, while industrials were at the other end of the spectrum with heavy losses in CIMIC shares following weaker FY results. Nikkei 255 (+0.4%) also closed off its best levels of the day with the index swayed by a choppy currency and numerous earnings releases, with Honda one of the outperformers due to a 31% jump in its 9-month net. Hang Seng (-0.2%) and Shanghai Comp. (-0.2%) were subdued after Hong Kong reported its first COVID-related death in 5 months and as headlines continue to highlight US-China frictions with the Biden administration said to be mulling trade actions on China, while US Commerce Secretary Raimondo said they will not let China off the hook regarding the Phase One trade deal. Furthermore, SGH Macro recently noted that it understands Beijing will not ask Washington to reopen trade talks until the Biden administration decides to lift “punitive tariffs” on Chinese goods and that China will also refuse to talk with the US on a supplementary agreement to the Phase I trade deal or engage in Phase II negotiations with US.

10 Feb 2022 - 06:00- Research Sheet- Source: Newsquawk