Chinese Tech Pares Gains; Australian Financials Founder Post-RBA

Major Asia-Pac equity indices are mostly higher at typing, mirroring a lead from Wall St. An initial region-wide equity rally led by Hong Kong and Chinese stocks was later reduced on a reversal in the latter, taking most regional benchmarks off of their session highs in the process.

• The Hang Seng Index sits 1.5% firmer at typing, backing away from session highs as initial strength in China-based tech and financials moderated through Asia-Pac dealing. The Hang Seng Tech Index is 2.7% better off (back from session highs at +4.3%), with well-known tech large-caps catching a bid on as worry re: regulatory crackdowns on the sector have continued to ease. To elaborate, authorities on Tuesday approved a second, larger batch of video games for ‘22, lifting sentiment in the tech sector (keeping in mind the crackdown on the sector that began in ‘21), and adding to positive sentiment after previously-flagged reports that regulators were looking to wrap up investigations in Didi Global and other tech companies.
• The CSI300 is 0.4% worse off at typing, sharply flipping from gains of as much as 1.1% to losses on a broad market-wide retreat, and underperformance in the industrials sub-index (-2.5%), led by weakness in major battery manufacturer CATL (-6.8%).
• Equity trading volumes for Chinese stocks crossed CNY1.0tn on two consecutive days this week (Mon and Tue) - the first time this has happened since mid-March, and before the most recent in-country COVID flare-up.
• The Nikkei 225 sits 0.9% higher at writing with some optimism evident, aided by the release of better-than-expected final Q1 GDP figures earlier in the session. Broader JPY weakness again provided a tailwind to Japanese equities as well, with real estate and export-related names leading gains.
• The ASX200 is 0.4% better off at typing, operating a little above worst levels after paring gains from best levels near the open(~+0.9%) . Gains in energy, materials, and technology names were able to offset steep losses in the “Big 4” Australian banks, which each sit 2.6% to 5.6% lower apiece at writing. A note that the underperformance in the latter four comes after the RBA’s surprise 50bp hike on Tuesday, with the ASX200 Financials sub-index now on track for a third-consecutive day of losses, down ~5.3% for the week so far.
• U.S. e-mini equity index futures trade 0.3% to 0.4% lower at typing, operating a little below their respective best levels made late in Tuesday's NY session.