Higher In Asia As Geopolitical Tensions Ease

Major Asia-Pac equity indices sit 0.7% to 2.0% higher, tracking a strong lead from Wall St. following Tuesday’s apparent easing in Russia-Ukraine tensions. In local matters, the latest Chinese CPI and PPI prints provided downside surprises, lifting regional sentiment, as the dataset boosted hopes re: the prospects of further PBoC easing.

• The Nikkei 225 leads regional peers, lodging 2.0% gains, erasing losses made earlier in the week. Index heavyweights and blue chips such as Fast Retailing and Softbank led the way higher. These bellwethers broadly outperformed high-beta tech stocks, meaning the TOPIX trailed the Nikkei 225, although the former still added a more than healthy 1.5%.
• The CSI300 trails regional peers (even with the door to further PBoC easing opening further post-China inflation data), trading 0.7% higher, with the rare earth and real estate sub-indices providing the most notable gains. High-beta Chinese tech underperformed the broader market, with the ChiNext and STAR50 trading 0.5% and 0.1% higher, respectively.
• U.S. e-mini equity index futures are 0.1% to 0.2% softer as we type, a touch below Tuesday’s best levels. The continued scepticism from the West re: Russia’s outlined de-escalation on the Ukrainian border has capped the space since Tuesday’s settlement.