Mixed In Asia; China’s COVID Easing Optimism Moderates

Major Asia-Pac equity indices are mixed at typing, broadly bucking a negative performance from Wall St. while Hong Kong and Chinese equity benchmarks underperformed.

• The Hang Seng Index leads losses, dealing 0.7% softer at typing and on track to snap a three-day streak of gains. China-based tech names lead losses, with the Hang Seng Tech Index sitting 1.7% worse off, led by losses in Baidu Inc (-5.0%) and Meituan (-3.2%), and ahead of the latter’s earnings call on Thursday.
• The CSI300 is virtually unchanged at writing, having struggled to rise above neutral levels throughout the session. The benchmark ultimately trades a little below five-week highs made on Tuesday however, with a weaker-than-expected Caixin Manufacturing PMI reading for May (48.1 vs median 49.0) being assessed against the country’s well-documented efforts to lift COVID lockdowns in Shanghai. Richly-valued consumer staples and healthcare equities underperformed while tech names caught a bid, with the ChiNext index adding 1.2% at writing.
• The Nikkei 225 sits 0.6% better off at typing, paring gains after hitting fresh six-week highs earlier in the session. Financials and export-oriented names (particularly automakers) outperformed amidst another bout of JPY weakness, while real estates stocks rebounded from a dismal performance on Tuesday.
• U.S. e-mini equity index futures deal 0.2% to 0.5% firmer, operating around the middle of their respective ranges on Tuesday at typing.