ASIA-PAC EQUITY WRAP: Asia stocks gained after Fed Chair Powell's presser soothed the initial hawkish reaction to the FOMC and as Chinese tech stocks remain euphoric from recent policy support pledges

Analysis details (05:55)

Asian equity markets were higher across the board following the advances of their counterparts on Wall St which finished at session highs after Fed Chair Powell's press conference helped markets shrug off the initial hawkish reaction to the FOMC’s 25bps rate hike and steeper rate path projection. ASX 200 (+1.1%) was led higher again by outperformance in tech and with sentiment also underpinned following stronger than expected jobs data. Nikkei 225 (+3.5%) saw a more than 900-point intraday gain on the back of recent currency weakness, with the index unfazed by mixed machinery orders data and the deadly earthquake in Fukushima which claimed four lives, resulted in mass power outages and caused disruption to factories including for automakers Nissan and Toyota. Hang Seng (+5.6%) and Shanghai Comp. (+2.0%) were also positive as tech stocks remained euphoric after China’s recent policy support pledges which lifted the NASDAQ Golden Dragon China Index by 33% during US hours and with the PBoC boosting its liquidity efforts. Significant gains were also seen amongst developers with China not planning to expand its pilot property tax reform to additional cities this year and with the CBIRC vowing to support property projects M&A, while a rate hike in Hong Kong failed to dent the risk appetite as this was widely expected with the HKMA moving in lockstep with the Fed owing to the USD/HKD peg.

17 Mar 2022 - 05:53- Fixed IncomeResearch Sheet- Source: Newsquawk