ASIA-PAC EQUITY WRAP: Asian stocks declined amid the geopolitical backdrop and COVID-19 concerns in China

Analysis details (06:02)

Asia-Pac stocks traded mostly negative after the weak lead from US amid the current geopolitical backdrop and as the retreat in Chinese stocks persisted due to COVID-19 concerns. ASX 200 (-0.7%) was dragged lower by weakness in the commodity-related sectors amid pressure in underlying prices including oil which declined by as much as 6% overnight. Nikkei 225 (+0.2%) was kept afloat by favourable currency flows and with Japan said to plan an end of the quasi-state of emergency in Tokyo. Hang Seng (-4.6%) and Shanghai Comp. (-3.6%) extended on the prior day’s stock rout with heavy losses at the open after a jump in Chinese COVID-19 infections and with tech heavily suffering in the wake of a near-12% drop in the Nasdaq Golden Dragon Index. In addition, the PBoC disappointed expectations for a 10bps cut to the 1yr MLF rate, although its CNY 200bln operation resulted in a CNY 100bln net injection and the latest Chinese Industrial Production and Retail Sales topped forecasts which briefly helped pare some of the losses. 

15 Mar 2022 - 06:02- EnergyResearch Sheet- Source: Newsquawk