ASIA-PAC EQUITY WRAP: Asian stocks mostly took impetus from Wall St peers amid lower yields, although some bourses lagged on policy tightening

Analysis details (06:04)

Asia-Pac equity markets were mostly positive following on from the gains on Wall St where risk appetite was supported by a softening in yields that helped outperformance in tech and consumer discretionary, although financials lagged on disappointing JPMorgan earnings. ASX 200 (+0.6%) was positive as utilities, miners and tech lead the advances across nearly all industries but with upside capped after employment data missed forecasts and with the top-weighted financials sector cautious as Bank of Queensland shares failed to benefit from a lift in earnings. Nikkei 225 (+1.1%) continued its outperformance and reclaimed the 27,000 level with Japan’s ruling coalition parties unveiling details of their draft relief proposals. KOSPI (+0.1%) was subdued after the BoK hiked rates by 25bps which was against the majority of analysts’ forecasts for a pause, while Straits Times Index (+0.1%) was also contained after the MAS conducted a two-pronged tightening of its FX-based policy. Hang Seng (+0.5%) and Shanghai Comp. (+0.9%) were positive ahead of the four-day Easter weekend in Hong Kong and with speculation rife for the PBoC to lower rates tomorrow via an MLF rate cut, while Citi also sees the possibility for a RRR cut on Friday to free up around CNY 1.2tln cash.

14 Apr 2022 - 06:02- Research Sheet- Source: Newsquawk