ASIA-PAC EQUITY WRAP: Asian stocks were mostly lower amid the debt limit impasse and US-China frictions, while NZX 50 was underpinned by a dovish RBNZ rate increase which signalled the end of the hiking cycle

Analysis details (05:46)

Asia-Pac equity markets were mostly lower following the negative lead from Wall St where sentiment was weighed on by the ongoing debt limit impasse with just 9 days left to the X-date and amid US-China frictions after the US House China Select Committee Chair called for retaliation against China’s ban on Micron. ASX 200 (-0.3%) declined with the resilience in the commodity-related sectors offset by weakness across the broader market and after Westpac Leading Index remained depressed, while the NZX 50 (+0.4%) was underpinned after a dovish RBNZ rate hike which signalled the end of its rate increases. Nikkei 225 (-0.8%) was pressured after its recent pullback to beneath the 31,000 level despite reports that the government is to consider childcare handouts for those up to 18 years old, while the first positive reading this year in the monthly Reuters Tankan manufacturing survey did little to spur risk appetite. Hang Seng (-0.8%) and Shanghai Comp. (-0.7%) were lower amid US-China frictions after the White House spoke out against the Micron ban and a US lawmaker called for the Commerce Department to add Changxin Memory Technologies to the entity list, as well as ensure no US export licenses are granted to firms operating in China which are used to backfill Micron.

24 May 2023 - 05:45- Research Sheet- Source: Newsquawk