ASIA-PAC EQUITY WRAP: Asian stocks declined after the roller coaster session in US; ASX 200 slumped as firm CPI data brings forward rate hike calls, while Nikkei 225 briefly fell below 27k for the first time since August

Analysis details (05:57)

Asia-Pac equity markets were heavily pressured despite the recovery on Wall St where the major indices finished a roller-coaster session in the green after the Nasdaq rebounded from a 4% intraday slump and the DJIA also clawed back losses of more than 1,000 points, although US stock index futures have since soured overnight. ASX 200 (-2.5%) retreated below the 7k level with broad losses across all sectors and sentiment further dampened by weak NAB Business Confidence which turned negative, as well as firmer than expected CPI data which strengthened the case for the RBA to tighten policy and saw several banks bring forward their RBA rate hike calls to August this year. Nikkei 225 (-1.8%) briefly retreated below 27K for the first time since August last year, while the KOSPI (-2.4%) failed to benefit from encouraging GDP data in which its economy grew by 4.0% annually in 2021 which was the fastest pace in 11 years, as South Korea also registered a record of new daily COVID-19 cases and reports noted that North Korea may have fired two cruise missiles. Hang Seng (-1.6%) and Shanghai Comp. (-1.8%) conformed to the downbeat mood with Hong Kong dragged by notable losses in its tech sector and Chinese property names were also subdued amid ongoing Evergrande woes after the developer urged investors against aggressive legal action and its advisory team initiated active dialogue with offshore creditors.

25 Jan 2022 - 05:53- Fixed IncomeData- Source: Newsquawk