Mostly Higher In Asia On Light Post-FOMC Tailwinds

Major regional equity indices are mostly higher at typing, tracking a positive lead from Wall St. Most benchmarks nonetheless trade below their best levels for the session, having pared opening gains as earlier optimism surrounding the Fed’s rate hike decision on Wednesday moderated throughout Asia-Pac dealing.

• Sentiment in high-beta equities across the region was markedly more positive in the wake of the Fed’s 75bp hike on Wednesday, with focus swirling around Fed Chair Powell saying that “unusually large” hikes would likely be rare going forward.
• The Nikkei 225 leads regional peers to trade 1.2% higher at typing, on track to snap four straight sessions of declines, with ~200 of the index’s 225 constituents in the green. Major exporters and large-cap names such as Fast Retailing Co. lead gains, aided by continued weakness in the JPY, and optimism from Japanese export data outperforming expectations earlier in the session. Elsewhere, the energy and material sub-sectors notably lagged peers amidst weakness in major energy and commodity benchmarks,
• China’s CSI300 sits 0.4% better off at writing, with richly-valued consumer staples (particularly large-cap Kweichow Moutai) and healthcare equities leading gains.
• The Hang Seng Index is 0.4% worse off at typing, bucking the broader trend of gains after reversing an earlier, higher open on weakness in China-based tech names and property-related equities. On the latter, the Hang Seng Properties Index trades 1.1% lower, with evident investor worry re: a rise in borrowing costs impacting property sales, following the Fed’s move to raise rates on Wednesday.
• The ASX200 trades 0.3% firmer, led by gains in tech names and the major miners. The S&P/ASX All Technology Index is 1.3% better off, having pared gains from as much as 1.9% earlier in the session. Large-caps Block Inc, Xero Ltd, and REA Group lead gains, with a limited recovery in the cryptocurrency space from its own lows likely lending support to some of the index’s constituents as well.
• U.S. e-mini equity index futures deal 0.3% firmer at typing apiece, backing away from session highs at ~1.0% heading into European hours. The contracts nonetheless sit a little below their respective best levels made on Wednesday, holding on to much of their post-FOMC gains.