ASIA-PAC EQUITY WRAP: Asian stocks were mostly lower amid US debt ceiling woes and after the FOMC Minutes showed officials were split regarding support for further rate hikes, while Fitch placed the US on Rating Watch Negative
Analysis details (05:52)
Asian stocks traded mostly lower with the region cautious following the losses on Wall St owing to debt ceiling fears and after the FOMC Minutes showed officials were split on support for more hikes, although US index futures were boosted after hours as NVIDIA shares surged around 25% post-earnings which puts it closer to the trillion-dollar market cap club. ASX 200 (-1.1%) weakened as the commodity-related sectors led the broad declines across nearly all industries and with sentiment also dampened as households are set to pay hundreds of dollars more each year after the energy regulator approved an increase of up to 25% in electricity bills. Nikkei 225 (+0.3%) was kept afloat but with the upside capped in the absence of any major positive drivers or tier-1 data releases. KOSPI (-0.5%) was subdued after the BoK rate decision in which the central bank kept rates unchanged as expected, although 6 out of the 7 board members saw the need to keep the door open for one more rate hike. Hang Seng (-2.1%) and Shanghai Comp. (-0.7%) were pressured with underperformance in Hong Kong after the benchmark index slipped beneath the 19,000 level, while the mainland was lacklustre amid recent US-China frictions.
25 May 2023 - 05:50- Fixed IncomeResearch Sheet- Source: Newsquawk
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