Mixed As Commodities Push Higher

Major Asia-Pac equity indices are mixed following a negative lead from Wall St., with Hong Kong and Chinese stocks notably under pressure. Most energy and materials stocks across the region have again caught a bid amidst a continued rally in commodities, while high-beta equities fell amidst elevated inflation worry arising from the well-documented U.S. and UK embargoes of Russian crude.

• The ASX200 outperformed, snapping a three-day streak of losses to finish 1.0% higher, although the wider trend was bucked here, with energy names little changed on net, while the tech sector led the rally..
• The Hang Seng sits 2.2% weaker at typing, taking the index to levels not witnessed since Jul ‘16. An address by Hong Kong Chief Executive Carrie Lam mainly re: the city’s worsening COVID-19 outbreak has done seemingly little to sooth investor nerves, with steep declines seen in the Hang Seng’s Commerce & Industry sub-index. China-based tech companies struggled as well, with the Hang Seng Tech Index plunging to another all-time low.
• The CSI300 is 1.3% worse off at writing, with inflation-sensitive healthcare and consumer discretionary stocks leading losses in the index. Chinese PPI slowed in Y/Y terms during Feb (although still topped wider expectations), while the CPI print held steady, below 1.0% Y/Y. Discussions re: the scope for further easing from the PBoC have done the rounds, with the well-documented commodity price surge widely tipped to impact Chinese inflation readings as early as March.
• U.S. e-mini equity index futures deal 0.3% to 0.5% firmer at typing.