ASIA-PAC EQUITY WRAP: Asian stocks were mostly subdued after weak US data and heading into the Easter holiday closures, but with losses stemmed by strong Chinese Caixin Services PMI data

Analysis details (06:02)

Asia-Pac stocks were mostly subdued amid headwinds from the US where further weak data releases added to the economic slowdown concerns and with risk appetite also restricted as global markets approach the Easter holiday period, albeit with the downside stemmed as participants digest the latest Chinese Caixin Services PMI data which showed an acceleration in services activity. ASX 200 (-0.4%) was marginally lower as weakness in the tech and real estate sectors just about overshadowed the resilience in defensives and with trade data showing a monthly drop in both imports and exports. Nikkei 225 (-1.3%) resumed the prior day’s underperformance amid some speculation of a potential policy shift by the BoJ soon as the Kuroda era comes to an end this week and with former BoJ Director Momma suggesting the recent drop in global bond yields has created favourable conditions for the BoJ to scrap its YCC this month. Hang Seng (-0.1%) and Shanghai Comp. (Flat) were lacklustre after a substantial liquidity drain by the PBoC and amid frictions related to Taiwan President Tsai’s meeting in the US with members of Congress including House Speaker McCarthy although losses were minimal following the strong Chinese Caixin Services and Composite PMI data. Elsewhere, the Nifty (+0.2%) pared losses with mild support after the RBI surprised with its decision to keep rates unchanged but maintained its policy stance of remaining focused on the withdrawal of accommodation and Governor Das also noted that the decision for a pause is for this meeting only.

06 Apr 2023 - 06:01- Fixed IncomeData- Source: Newsquawk