ASIA-PAC EQUITY WRAP: Asian stocks were subdued after Wall St suffered its worst day in two months as strong PMI data spurred hawkish terminal rate bets

Analysis details (05:55)

Asia-Pac stocks were subdued after the declines on Wall St where the major indices were pressured on return from the holiday weekend as strong PMI data from both sides of the Atlantic spurred hawkish central bank repricing and eventually dragged the S&P 500 below the 4,000 level, while geopolitical concerns also provided a headwind after Russian President Putin suspended participation in the New START nuclear arms treaty. ASX 200 (-0.3%) briefly dipped below 7,300 amid a slew of earnings releases although clawed back most of its losses after weak data releases including a surprise contraction in Construction Work and softer-than-expected Wage Price Index which removes some of the hawkish impetus for the central bank. Nikkei 225 (-1.4%) was among the worst performers and approached closer to testing the 27,000 level to the downside. Hang Seng (-0.2%) and Shanghai Comp. (-0.3%) conformed to the subdued mood in which weakness in tech briefly pulled the Hong Kong benchmark into correction territory although losses were then pared after the budget announcement which included a giveaway of HKD 5,000 in consumption vouchers and a cut in salary taxes, while there was also strength in HSBC and Hang Seng Bank which were underpinned by recent earnings results.

22 Feb 2023 - 05:53- Research Sheet- Source: Newsquawk