ASIA-PAC MARKET WRAP: Broad risk aversion in Asia after another failed relief rally stateside and slump in Netflix post-earnings

Analysis details (06:13)

Broad risk aversion was seen in Asia after another failed relief rally in the US where equities slumped in late trade amid ongoing hawkish themes and after key levels were breached stateside whereby the S&P 500 gave up the 4,500 level and the Nasdaq 100 slumped beneath 15k and its nearby 200DMA. Futures were also pressured after-hours as Netflix shares slumped 20% post-earnings despite beating on the bottom line for Q4, as net subscribers missed estimates and it also disappointed on its Q1 guidance, while a retreat in Bitcoin beneath 40k adds to the soured mood. ASX 200 (-2.3%) was pressured by weakness across all sectors and with notable losses in miners including Rio Tinto after the cancellation of its lithium project licence in Serbia, while the Western Australian Premier also postponed the state’s planned border reopening indefinitely. Nikkei 225 (-0.9%) suffered the pressure from a firmer currency which inflicted around a 500-point intraday loss on the index and with the latest CPI figures printing softer than forecasts. Hang Seng (-0.7%) and Shanghai Comp. (-0.8%) conformed to the overall downbeat mood with underperformance seen in tech names including Alibaba after its affiliate Ant Group was implicated by Chinese media in a corruption scandal, although the losses for the broader Chinese market are moderated by the continued speculation of further PBoC support with sources reports stating that the PBoC is to lower interest rates on its Standing Lending Facility for all tenors by 10bps today.

21 Jan 2022 - 06:12- EquitiesData- Source: Newsquawk