ASIA-PAC EQUITY WRAP: Asian stocks were mostly higher as Chinese stimulus efforts offset mixed PMI data

Analysis details (05:58)

Asia-Pac stocks headed into month-end mostly on the front foot after Friday’s data and tech-led momentum from Wall St and as participants digested the latest support efforts from China and mixed official PMI data. ASX 200 (-0.2%) lagged with strength in the commodity-related sectors offset by weakness in consumer stocks and financials, with the mood cautious ahead of tomorrow’s RBA rate decision where there is a discrepancy between money markets pricing and analysts’ median expectations on whether the central bank will hike or pause. Nikkei 225 (+1.0%) was boosted from the open and rose back above the 33,000 level amid a weaker currency and as markets digested the BoJ’s recent shift to a more flexible approach which provided early tailwinds for financials, while the central bank announced unscheduled bond purchases and participants also shrugged off disappointing Industrial Production data. Hang Seng (+1.5%) and Shanghai Comp. (+0.6%) were higher amid stimulus-related optimism as Chinese officials are set to announce more measures for consumption, recovery and expansion, while the NDRC said it will solidly promote development and reform, as well as stick to the general principle of making economic stability a top priority. Furthermore, mixed official PMI data from China failed to dampen the mood in which headline Manufacturing PMI slightly topped forecasts but remained in contraction territory at 49.3 (exp. 49.2) and Non-Manufacturing PMI disappointed at 51.5 (exp. 53.0) which was the slowest pace of increase since December 2022.

31 Jul 2023 - 05:56- Fixed IncomeData- Source: Newsquawk