Risk Appetite Supported By Reports Of Further Easing In China Covid Restrictions

MNI (Australia) - Risk appetite has firmed after Bloomberg headlines crossed, which stated China would ease Covid restrictions further. Among the measures, which could reportedly be announced today, include home quarantine as a nation-wide policy, along with scaling back unnecessary testing. Scanning in when entering a public place could also be scaled back or scraped altogether.

• This report follows after earlier in the week reports by Reuters that China may announce 10 easing Covid steps today.
• In terms of market reaction, USD/CNH is back sub 6.9700, getting close to 6.9600 before stabilizing. Earlier highs were above 6.9900. 1 month USD/KRW is back to a 1315 handle, against earlier highs of 1325.50. In the G10 space, most FX is back firmer against the USD, losing the earlier softer trend, although the A$ leads the rest of the space, last at 0.6705/10, +0.30% higher for the session.
• Equities are mixed throughout the region, although most indices are away from worst levels. HSI is slightly higher for the session, casino stocks surging, which has outweighed weakness in the property segment after another share placement by Country Garden. US equity futures sit +0.20%/0.25% higher.
• Commodities haven't reacted a great deal so far, Brent crude is around flat ($79.40/bbl last), likewise for copper, while iron ore is down slightly from recent highs (last at $108/tonne).