Mixed Ahead Of U.S. CPI; Chinese Stocks Catch A Bid On COVID Relief, Renewed Easing Hopes

Major Asia-Pac equity indices are mixed at writing, tracking a similar performance from Wall St on Tuesday.

• The Hang Seng Index sits 1.7% better off at typing, on track to break a four-session streak of lower daily closes. The index’s Commerce & Industry sub-index was the only benchmark in the green, powered by gains in China-based tech such as BYD (+6.8%), Tencent (+4.4%), and Meituan (8.2%). The Hang Seng Tech Index correspondingly trades 4.6% higher at typing, largely unwinding Tuesday’s losses in the process.
• The CSI300 outperformed major equity index peers, dealing 2.0% higher at typing on broad strength across nearly all sub-indices. Chinese tech was notably bid, with the tech-heavy ChiNext sitting 4.3% better off.
• The strength in Chinese and Hong Kong-listed equities comes as the Chinese PPI print earlier in the session came in at a one-year low, with debate re: sufficient room for policy easing later doing the rounds in Asia. Falling COVID cases and a steady elimination of closely-watched community spread figures in the city of Shanghai also lent support to the positive mood, adding to support from additional remarks by the Biden administration re: the possible lifting of Trump-era tariffs on Chinese exports in the “coming weeks”.
• The ASX200 is 0.2% worse off at typing, back from worst levels (~0.8% lower), but continuing to operate a little above three-month lows made on Tuesday. Financial names lead losses in the index with the Big Four banks underperforming the ASX200 at typing, neutralising gains in the major mining stocks.
• U.S. e-mini equity index futures trade 0.2% to 0.8% higher at writing, extending a move higher from their respective multi-month lows made on Tuesday.