Japan Struggles On COVID Woes

The major Asia-Pac equity indices were mixed during the final session of the week, with participants keenly awaiting the impending U.S. NFP report.

• Local omicron worries weighed on Japanese equities, with reports pointing to the potential for a delay when it comes to the restart of the Go To travel campaign and rising chances re: the declaration of a quasi state of emergency in a handful of Japanese prefectures dominating Japanese headline flow. This allowed the Nikkei 225 to unwind its early gains, with the index trading in negative territory ahead of the close.
• The remainder of the major regional equity indices ticked higher. Chinese equities benefitted from another bout of reassuring rhetoric from the top Chinese regulatory body (delivered late Thursday). Elsewhere, Chinese state-owned developers supported the property sector, after reports suggested that M&A loans will not be included in China’s three red lines surrounding debt. It wasn’t all rosy in the developer space, after one of Shimao’s units missed payment on a domestic loan, triggering discussion re: the scope of contagion that could grip the sector.