Higher In Asia; Eight-Day Losing Streak Eyed

Virtually all Asia-Pac equity indices are higher at typing, bucking a mixed lead from Wall St. Energy-linked equities caught a bid amongst strength in major energy benchmarks, leading broader gains across the region with the MSCI Asia Pacific Index on track to snap an eight-session streak of losses.

• The Nikkei 225 deals 2.2% firmer at typing, extending a move off of three-month lows made on Monday. Japanese equities outperformed regional peers amidst the latest bout of JPY weakness, with USD/JPY holding a little below multi-decade highs through Asia-Pac dealing.
• The Hang Seng Index trades 1.4% higher at writing, on track for a third straight day of gains on strength in the Financials and Property sub-indices. The Hang Seng Properties Index sits 1.9% better off, with the sector benefitting from lingering tailwinds arising from a slew of Chinese cities signalling supportive policy changes in recent days. The Hang Seng Tech Index outperformed the broader Hang Seng, dealing 2.0% higher at typing.
• The CSI300 lagged major regional peers by comparison, dealing 0.3% firmer at typing, with worry from some quarters re: the country’s ongoing COVID outbreak evident. To elaborate, while daily case counts nationwide have remained low, an outbreak in the South of the country in Macau and nearby tech hub Shenzhen (albeit a more limited outbreak) have prompted fears of stringent pandemic control measures to be taken in those regions, with only relatively shallow gains observed across much of the CSI300’s sub-indices.
• The ASX200 trades 1.5% higher at writing, with a broad bid in mining stocks, tech names, and financials contributing the most to gains in the index. Broader market sentiment received a lift as RBA Governer Lowe signalled intent to debate rate hikes of 25 or 50bp for July, ruling out the potential for a 75bp hike (flagging data-dependence). Mining equities caught a reprieve on Tuesday as various benchmark metals reversed earlier losses, with benchmarks for copper and aluminium on track to break a multi-session streak of losses.
• U.S. e-mini equity index futures sit 1.4% to 1.7% better off, broadly on track to snap a two-day streak of losses at typing.