A Sea Of Red

Thursday’s risk negative-tone surrounding the troubles of Silcon Valley Bank reverberated through the Asia-Pac session, weighing on equities.

• E-minis extended on Thursday’s declines, with the S&P 500 contract below the 3,900 level after it breached a technical bear trigger. The contract operates a touch above its Asia-Pac base, last -0.7%, with any fresh extension lower set to turn focus towards the early January lows.
• The major Asia-Pac equity indices are comfortably in the red.
• The Hang Seng is the weakest, running 2.5% softer ahead of the weekend, while the Nikkei 225 (on the BoJ’s decision to stand pat) and CSI 300 were quick to unwind some relief rallies, before pushing onto fresh session lows thereafter.
• Japanese financials were particularly pressured in lieu of the BoJ decision, after the recent run of outperformance surrounding monetary normalisation hopes.
• Macro headline flow has been limited across Friday’s Asia-Pac decision, excluding the BoJ, leaving focus on Thursday’s headwinds for risk appetite.