ASIA-PAC EQUITY WRAP: Asia stocks traded higher but with gains mostly capped amid mass closures for the Lunar New Year holiday

Analysis details (05:56)

Asia-Pac stocks trade positively after the firm handover from Wall St where the major indices rallied on month-end and clawed back some of the losses from what was the worst monthly performance since March 2020, although the gains are limited in Asia and US equity futures marginally pulled back with conditions in the region extremely thin due to mass holiday closures for the Lunar New Year. ASX 200 (+0.5%) was kept afloat by strength in tech and financials with support also seen after the RBA policy announcement where the central bank kept rates at 0.10% and announced an end to QE purchases, as expected, but also stuck to a dovish tone in which it said the board is prepared to be patient and noted that easing bond purchases does not imply a near-term increase in interest rates. Nikkei 225 (+0.2%) was higher after a decline in Japanese unemployment and with the best-performing stocks underpinned by earnings releases, although some of the gains were reversed amid currency inflows. Furthermore, retailer Seven & I was boosted amid talks to sell its department store unit, while NSK was at the other end of the spectrum despite a return to profit in its 9-month results and materials manufacturer Toray was heavily pressured after it admitted it falsified samples of some of resin products to illegally acquire global safety certifications going back at least a decade.

01 Feb 2022 - 05:49- Fixed IncomeResearch Sheet- Source: Newsquawk