Asia Mixed As China Outperforms

The Nikkei 225, ASX200 and Kospi sit 0.4% to 1.0% softer following a limited negative lead from Wall St., with the major Asia-Pac equity indices trading at, or near, the bottom of their respective ranges.

• The Hang Seng is 0.7% weaker as the COVID-19 outbreak in Hong Kong worsens, with the index trading at session lows. The move lower came even as Chief Executive Carrie Lam announced that Hong Kong had no plans for a citywide lockdown. High-beta tech mega caps listed on the Hang Seng Tech Index fell in lockstep with the broader Hang Seng.
• The CSI300 bucked the broader trend, trading 0.9% higher at writing, following a move by the PBoC to inject CNY100bn in net medium-term liquidity. Chinese CPI and PPI data, due Wednesday, will likely draw focus, as participants continue to assess the outlook for monetary policy easing amidst a slowing Chinese economy.
• Just worth noting that the circulation on social media of images re: the Russian troop movements flagged on Monday (into an “attack formation”), coupled with some commentary from various U.S. military watchers, seems to have applied very modest pressure to e-minis in recent trade. The 3 major e-mini contracts are now 0.1-0.3% lower on the day. There doesn’t seem to be much new information in the tweets. We also saw the U.S. State Department issue travel warnings/guidance to leave re: the likes of Belarus & Moldova overnight, which applied light pressure to broader sentiment.