ASIA-PAC EQUITY WRAP: Asian stocks were mostly lower after the blowout US jobs data spurred hawkish rate bets, while Japan outperformed on reports that BoJ's Amamiya was sounded out for the next Governor which an official later denied

Analysis details (05:42)

Asia-Pac stocks began the week mostly on the back foot following on from last Friday’s losses in the US where a blowout jobs report spurred hawkish Fed rate hike bets and was seen to boost the Fed’s resolve of lifting rates further to above 5%. ASX 200 (-0.3%) was subdued heading into tomorrow’s RBA policy decision with the central bank widely expected to continue its hiking cycle and with a jump in the Melbourne Institute Inflation Gauge adding to the elevated inflation narrative, although the downside in the index was limited after quarterly Retail Sales data printed not as bad as feared and amid M&A prospects with Newmont making a USD 16.9bln offer for Newcrest Mining. Nikkei 225 (+0.6%) outperformed after a press report that Japan’s government sounded out BoJ Deputy Governor Amamiya about becoming the next central bank Governor with Amamiya seen to be much more dovish compared to other candidates and is also a key architect in many of the BoJ’s policies including QQE with YCC, although the index came off its highs as the report was later refuted by a senior government official. Hang Seng (-2.6%) and Shanghai Comp. (-1.1%) were lower with Hong Kong heavily pressured by weakness in tech, healthcare and property, while risk sentiment is also clouded by tensions after the US shot down China’s spy balloon.

06 Feb 2023 - 05:34- Fixed IncomeData- Source: Newsquawk