Mixed In Asia; Chinese Travel Catches A Bid

Major Asia-Pac equity indices are mixed at typing, with Chinese and Hong Kong stocks bucking the broader trend of losses.

• The CSI300 leads gains at +1.6%, with broad sentiment boosted by Chinese PMIs returning to expansionary territory. The consumer staples sub-index (+2.2%) contributed the most to gains on outperformance in the major Chinese liquor stocks, while travel and tourism stocks have continued to benefit from upbeat sentiment surrounding previously-flagged easing in nationwide pandemic control measures. The FTSE China A600 Travel & Leisure Index sits +3.3% firmer at typing to operate around four-month highs at typing, with index heavyweight China Tourism Group Duty Free Corp (+6.6%) leading gains.
• The Hang Seng Index is virtually unchanged at typing, having traded on either side of neutral levels throughout the session. Performance was mixed across the index, with limited gains in financials and utilities countered by weakness in China-based tech.
• The ASX200 sits 0.8% worse off at typing, on track for a second consecutive daily loss. Commodity-related names (particularly the major miners) lead the way lower, neutralising outperformance in tech equities.
• The Nikkei 225 trades 1.5% lower, shedding all of the week’s gains to date. Limited gains in smaller-cap equities did little to stem losses in >80% of the index’s constituents, with large-cap names such Tokyo Electron (-3.5%) and Fanuc Corp (-4.0%) contributing the most drag.
• U.S. e-mini equity index futures deal 0.2% to 0.3% weaker at typing, operating a little above Wednesday’s worst levels in fairly limited Asia-Pac dealing.