Higher As China Tech Leads Rally

The major Asia-Pac equity indices trade 0.5-0.9% higher at writing despite a negative lead from Wall St., as the former benefitted from the perception that western sanctions on Russia were more lenient than some participants had earlier feared. A quick reminder that Japanese markets were closed on Wednesday, as the country observed a national holiday.

• The Hang Seng leads gains amongst regional peers, +0.9% at writing. China-based large cap tech names such as Meituan outperformed, despite losses in their U.S. ADRs on Tuesday. The Hang Seng Tech Index added 1.3% as a result. Fears over a wide regulatory crackdown on tech companies have eased from Friday’s extremes, with a lack of escalation evident when it comes to fresh regulatory burden, at least week-to-date. Elsewhere, rumours pointing to a renewed crackdown on the online gaming sector haven’t been realised, yet.. The bid in Chinese equities also fed into mainland dealing.
• E-minis sit 0.4-0.7% better off at writing, with lingering worry re: Russia-Ukraine tensions providing a cap on the space. Participants continue to debate the possibility of a diplomatic resolution to the situation, with a lack of impending top level dialogue evident (Blinken-Lavrov and Biden-Putin talks are “off the table” for now).