Hong Kong & China Lead The Way, Even After China Plays Down Re-opening Rumours

The major Asia-Pac equity indices were little changed to firmer on Wednesday, with Hong Kong & Chinese equities leading the charge, building on Tuesday’s gains, even after the Chinese government played down any knowledge of the formation of a COVID re-opening committee late on Tuesday (with rumours surrounding that matter deemed the major driver of Tuesday’s move higher).

• News of fresh overt and stealth COVID-related restrictions surrounding some Chinese cities also failed to dent sentiment.
• The Hang Seng was subjected to shortened trading hours owing to adverse weather conditions in Hong Kong, closing 2.6% higher, while the CSI last prints ~1.4% better off.
• Elsewhere, the Nikkei 225 was limited by a firmer JPY, closing around unchanged levels, with the latest North Korea missile launch also doing little to aided sentiment in Japan.
• U.S. equity index futures lodged marginal gains, with the 3 major e-mini contracts last 0.1-0.3% higher, likely benefitting from the uptick in Hong Kong & Chinese equities.