Lower In Asia As Ukraine Tensions, Chinese Regulatory Fears Weigh

Major Asia-Pacific equity indices trade 1.2% to 3.0% lower, with pressure from Monday’s escalation in the Russia-Ukraine situation mixing with widening concerns re: a fresh wave of regulatory scrutiny in China.

• To recap recent Chinese regulatory moves, the NDRC (China’s top planning agency) directed food delivery platforms to reduce fees charged to restaurants last Friday, while BBG source reports on Monday stated that Chinese regulators had begun a fresh round of inquiries into domestic bank & state firm financial exposure to Ant Group Co.
• The Hang Seng leads losses amongst regional equity indices, sitting 3.0% worse off at typing. The Hang Seng Tech Index also deals 3.0% softer, hitting the lowest levels observed since its inception (July ‘20).
• The CSI300 is 1.6% weaker at typing, led by losses in the consumer staples sub-index, with steep declines for large cap names such as Kweichow Moutai Co and Wuliangye Yibin Co observed. The PBoC’s latest liquidity boost (via short-term OMOs), the outline of impending fiscal support for struggling local governments and a PBoC directive re: support for Shanghai’s property market failed to turn the tide for the index.
• U.S. e-mini equity futures are off of their respective Asia-Pac lows, sitting 1.6% to 2.4% weaker at typing. Participants continue to debate Putin’s ultimate end game when it comes to Ukraine, in addition to assessing the impact of the impending round of sanctions that the west is tabling re: Russia.