Higher In Asia As Volatility Ebbs

Most major Asia-Pac equity indices are firmer at typing, with a lack of escalation in the Russia-Ukraine conflict during the Asian session allowing participants to strike a more optimistic tone.

• The Nikkei 225 leads regional peers, adding 1.5% at typing, and is on track to record gains for a third straight session. Large caps, particularly those with a focus on exports, such as Fast Retailing Co and Tokyo Electron, lead gains within the index, shrugging off a slowdown in the Feb Jibun Bank M’fing PMI reading (52.7 vs Jan 55.4).
• The Hang Seng underperformed, sitting 0.3% softer at typing, on track for a fourth consecutive lower daily close. This came as authorities announced a lockdown of Hong Kong to conduct mandatory COVID-19 testing. The heaviest losses were observed in the utilities (-1.0%) and real estate sub-indices (-1.0%), with the former now trading at levels not witnessed since Mar ’21. For the latter, sentiment in China-based real estate developers suffered as February home sales data from independent real estate research firm China Index Academy suggested that momentum in the sector is still weak (30 out of 100 cities reported a rise in the prices of new homes, against 44 in January).
• U.S. e-mini equity index futures are little changed into European hours.