Mixed As Japanese Equities Lag

Unverified Russian reports of a Ukrainian mortar & grenade attack on the separatist region of Luhansk saw the major regional equity benchmarks move back from best levels, with the news story having varying degrees of impact on the space, as worries of a Russian false flag did the rounds.

• Chinese and Korean equity indices outperformed their major regional peers, while Australian, Japanese, and Hong Kong equities are flat to lower.
• The CSI300 is 0.4% firmer, aided by gains in new energy and metals sub-indices. On the other hand, the sub-index tracking real estate developers leads losses, as COVID–19 outbreaks in Hong Kong and some Chinese cities (e.g. Suzhou) weigh on sentiment.
• The Nikkei 225 leads regional losses, sitting 1.0% weaker, with heavily favoured names such as Recruit Holdings and NTT Data feeling the brunt of the wider risk-off pressure. Re-opening plays e.g. railways and airlines, were more fortunate, with expectations surrounding an impending announcement from Japanese PM Kishida re: the loosening of border restrictions providing tailwinds.
• E-minis sit 0.4-0.6% lower, having pared some of the Ukraine-related losses as questions re: the validity of the source of the reports allowed some of the initial risk-off move to fade.