Mixed In Asia; Chinese PMIs Add To Relief Amidst COVID Easing Hopes

Major Asia-Pac equity indices are mixed at writing, with Chinese and Hong Kong equities outperforming.

• The Hang Seng Index is 0.5% better off at typing, operating a little below four-week highs made earlier in the session. Hong Kong-listed stocks have caught a bid on a better-than-expected official Chinese PMI print, pointing to a moderating pace of contraction in the manufacturing and services sectors as the country accelerates towards the lifting of COVID-related restrictions in Shanghai and Beijing. China-based tech stocks outperformed, with the Hang Seng Tech adding 1.8% to hit its own four-week highs at writing. A note that a majority of the Hang Seng’s constituents have reported Q1 earnings thus far, with Meituan and Sino Biopharmaceutical’s earnings likely being the events to watch later this week.
• Looking to China, the CSI300 trades 1.1% higher at writing, on track to make a third straight day of gains on tailwinds from aforementioned COVID-related easing and PMI print.
• The Nikkei 225 sits a little below neutral levels at typing, albeit back from worst levels earlier in the session. Broad gains in energy and materials-related names were neutralised by a mixed performance amongst major exporters on JPY weakness, adding to underperformance in the real estate sub-index
• The Australian ASX200 lagged regional peers, trading 0.6% lower at typing, on track to break a two-day streak of gains after hitting 3-week highs on Monday. A mixed performance in energy and material-related names was worsened by drag from a miss in Building Approvals data, adding to weakness in technology-related equities. On the latter, the S&P/ASX All Technology Index deals 1.5% softer, led lower by losses in large-caps Block Inc (-3.3%) and Xero Ltd (-1.5%).
• U.S. e-mini equity index futures sit 0.1% to 0.5% better off with NASDAQ contracts outperforming, operating a little below their respective four-week highs made in Monday's session.