China/HK Markets Recover After Covid Restrictions Eased Further

(MNI Australia) - Asia Pac equities are away from worst levels, with most focus on a further reduction in Covid related restrictions in China. The moves were expected to some degree, with Reuters stating earlier in the week such an outcome could unfold today. China and HK shares are seeing the main benefit at this stage, while US futures hold in positive territory.

• The easier covid restrictions look to be widening out home quarantine for some Covid patients' nation wide, while scrapping testing requirements for most public places. Testing frequency will also be reduced.
• The HSI is back to 1% after an indifferent first part of the trading session, while the HS China enterprise index is slightly firmer at +1.20%. Casino related stocks have surged, offsetting weakness in the property sub-index. Mainland stocks have recovered from earlier losses, with the CSI 300 now up 0.45%.
• Elsewhere, trends are more mixed though. The Nikkei is down 0.60%, while the Kospi is trying to push into positive territory.
  Commodity related indices are lower, with the ASX200 off by 0.85%, while the Indonesian JCI is down by nearly 1%. Indian stocks are also trading with a negative bias after the RBI delivered a hawkish 35bps hike.