March 22, 2023 05:14 GMT
Rallying Ahead Of FOMC
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Regional equity markets are all tracking higher ahead of the upcoming Fed decision. Gains have been led by HK and Japan markets, although all major bourses are firmer. US equity futures are a touch higher, with eminis remaining close to 2 week highs, last around ~4039. EU futures are modestly higher as well.
- Japan markets have played catch up after returning from yesterday's holiday. The Topix near a 2% gain, with the bank index up around 2.5% at this stage. Sell-side analysts have stated AT1 bond risks are low for the country's banks, which has aided sentiment at the margin.
- The HSI is also close to 2% higher. Gains have been broad based across the bank, property and tech spaces. The headline HSI index is getting close to erasing losses for March.
- China shares have lagged somewhat, the CSI 300 is +0.32% firmer at this stage. Some AI related companies have underperformed as shareholders stated they would offload shares given the recent rally. We have also seen modest northbound outflows in the session so far, after 7 straight sessions of inflows.
- The Kospi (+1%) and Taiex (+1.35%) are both tracking higher as well, although offshore investors in the Kospi have lagged the recent turnaround in the index.
- The ASX 200 is +0.90% higher, led by financial stocks. Higher oil prices have boosted energy related names, although lower iron ore prices has weighed on some part of the materials space.