Chines Equities May Dominate Asia-Pac Trade

A reminder that Chinese markets return from their week-long break on Thursday.

• The potential for heightened Sino-U.S. tensions has been a point of discussion in recent days, after the FT released a source report suggesting that China is exploring the imposition of export restrictions on rare-earths, in an attempt to stifle the U.S. defence ministry. Late Wednesday saw a piece in China's state-owned Global Times suggest that "China's rare-earth exports to the US are not being restricted and are continuing unaffected, but reviews of such an option may have been done and measures could be taken against foreign companies that hurt China's interests, when necessary, experts and industry sources said."
• Chinese equity markets will likely be front and centre during Asia-Pac hours, with a focus on strong consumption growth over the LNY period (in Y/Y terms). A reminder that the previous LNY period was also subjected to heavy COVID-related restrictions.