ASIA-PAC EQUITY WRAP: Asian stocks began the week mostly higher, although China lagged after setting a modest growth target of about 5% for the year

Analysis details (05:48)

Asia-Pac stocks were mostly positive as the majority of bourses took impetus from last Friday’s gains on Wall St where the Nasdaq outperformed amid a softening yield environment, although gains were capped in the region after China set a modest economic growth target of about 5% for 2023. ASX 200 (+0.6%) was positive as strength in tech, financials and the consumer sector offset the weakness in the mining industry but with further upside limited heading into the RBA rate decision tomorrow where the central bank is widely expected to deliver a 10th consecutive rate hike. Nikkei 225 (+1.2%) outperformed after topping the 28k level for the first time this year with SoftBank leading the advances following reports that its Arm unit is seeking to raise at least USD 8bln from a US IPO, while the KOSPI (+0.5%) was also higher as softer-than-expected CPI data eased the pressure for the BoK to resume rate hikes and with South Korea unveiling a plan to ease tensions with Japan regarding wartime forced labour compensation. Hang Seng (+0.4%) and Shanghai Comp. (-0.2%) traded mixed with early pressure after China set its growth target at about 5% which is the slowest growth target in over two decades and with the PBoC’s operations resulting in a significant net liquidity drain of CNY 329bln, although some of the losses were pared given that China also made several support pledges and following the announcement of further inclusions to the Stock Connect.

06 Mar 2023 - 05:45- Fixed IncomeData- Source: Newsquawk