ASIA-PAC EQUITY WRAP: Asia traded mixed amid the hawkish Fed perception, while Chinese markets rallied on tech strength and liquidity boost

Analysis details (06:08)

Asian equity markets were mixed with the region cautious after the losses on Wall St where risk assets were pressured as markets focused on the hawkish aspects of the recent two-sided remarks from Fed officials who suggested the need to do more on rates and that they could be higher for longer than some currently expect. ASX 200 (-0.5%) was dragged lower by underperformance in tech and utilities with the latter not helped by the near-10% slump in AGL Energy after its H1 generation volumes fell 7% Y/Y and it cut its FY guidance. Nikkei 225 (Flat) was subdued with individual stock movers influenced by the slew of mid-to-small cap earnings results. Hang Seng (+1.5%) and Shanghai Comp. (+1.0%) were initially lacklustre amid the absence of any major catalysts but then shrugged off opening losses and edged higher after the PBoC’s liquidity injection which provided some relief against the rising funding costs from a recent jump in loan demand and with Hong Kong buoyed by tech strength.

09 Feb 2023 - 06:03- Fixed IncomeResearch Sheet- Source: Newsquawk