ASIA-PAC EQUITY WRAP: Asian stocks traded mixed with Chinese markets lagging on tighter COVID-19 restrictions in Hong Kong and US-related frictions

Analysis details (05:56)

Asia-Pac markets traded mixed following the choppy price action in US where the major indices stumbled into the close on what was a catalyst-lite session with newsflow dominated by geopolitical headlines amid US-Germany and Russia-France talks, despite the lack of any major fresh developments. ASX 200 (+0.9%) was led higher by strength in mining-related stocks and with the top-weighted financials sector also underpinned after earnings updates from Macquarie and Suncorp. Nikkei 225 (+0.5%) was supported by favourable currency flows and following an agreement with the US to roll back Trump-era steel tariffs on a quota of Japanese steel products, but with upside limited after disappointing data including the miss on Household Spending and Labour Cash Earnings, while SoftBank shares were indecisive after reports its USD 66bln deal to sell Arm to Nvidia collapsed although it will receive a breakup fee and is to offload the unit through an IPO by year-end. Hang Seng (-1.4%) and Shanghai Comp. (-0.7%) were pressured with Hong Kong announcing tighter COVID-19 restrictions and amid US-China related frictions in which WuXi Biologics slumped more than 30% and its shares were halted after the inclusion of two units in the US ‘unverified’ list, while tech was also subdued with the ChiNext board now eyeing a bear market.

08 Feb 2022 - 05:53- EquitiesResearch Sheet- Source: Newsquawk