Flat To Higher In Asia

The combination of a signal that Chinese economic growth would top the official target in ’20 (accompanied by continued focus on supporting SMES via steady and stable macro policy, courtesy of Vice Premier Liu He) and the previously flagged bid in oil prices supported the major regional equity indices during the Asia-Pac session. Still, it wasn’t all rosy when it came to China, with the latest Caixin manufacturing PMI survey revealing a softer than expected reading (which represented marginal contraction).

• Still, the previously flagged supportive factors helped markets regain some poise after Omicron worry and the prospect of swifter Fed tapering applied pressure to the broader equity space on Tuesday. The ASX 200 was the exception to the broader rule, registering marginal losses, with the consumer staples, real estate and utilities sectors providing the major drags there. E-minis nudged higher, with the S&P 500 contract adding ~1%.