ASIA-PAC EQUITY WRAP: Asian stocks lacked firm direction after hawkish-leaning FOMC Minutes and amid holiday-thinned trade with Japan away for the Emperor's Birthday

Analysis details (05:47)

Asia-Pac stocks lacked firm direction with price action mostly rangebound amid thinned conditions due to the holiday closure in Japan and following the mixed performance stateside where the major indices faded mild gains in the aftermath of the FOMC minutes, which noted that a few participants favoured raising rates by 50bps and all agreed more rate hikes were needed. ASX 200 (-0.4%) was the laggard with the index weakened by underperformance in the mining industry after recent declines in commodity prices and a slump in Rio Tinto’s profits, although losses are limited as participants also digested better-than-expected capex data. KOSPI (+1.0%) was the biggest gainer amid recent currency weakness and after the BoK kept its rate unchanged for the first time in a year, as unanimously expected. Hang Seng (Flat) and Shanghai Comp. (-0.2%) were indecisive with stocks initially led higher by strength in tech and after China vowed to improve measures to cut taxes and fees, although the gains were briefly pared amid ongoing global frictions and the PBoC’s liquidity drain. Conversely, US equity futures recovered overnight led by Nasdaq 100 futures after NVIDIA's earnings topped forecasts which boosted its shares by nearly 9% after-hours.

23 Feb 2023 - 05:45- Research Sheet- Source: Newsquawk