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Still In The Red

EQUITIES

The majority of Asia Pacific equity markets are in the red. For the major indices losses are between 1-2%, if not slightly larger. Australian markets are down close to 5%, reflecting catch up from yesterday's holiday. Bitcoin's 10% fall added to the risk off mood. Only a couple of South East Asian markets are managing to print higher within the region.

  • In China, the CSI 300 has dipped 2%, while CHINEXT is down 3% at the time of writing. Infrastructure related names are doing better after the PBoC urged banks to boost loans for major water infrastructure projects under the 800bn yuan quota. Onshore covid trends are moving unfavorably though, which could weigh on the domestic rebound.
  • The HSI is off by a more modest 1%, but tech shares are underperforming, down by over 2%. The China Golden Dragon index fell by close to 7% overnight and is now back below the 100 day MA.
  • Japan benchmarks are down by 1.5 to 2%. Earlier comments on FX markets haven't had much follow through. USD/JPY is back above NY closing levels to 134.50. The BoJ remains committed to its yield target. The weaker yen may aid equities in the afternoon session.
  • Australian equities have fallen by close to 5%, reflecting some catch up from yesterday's holiday. Materials, which are linked to commodities and the global outlook, have fallen sharply (-5.9%), while local bank stocks (financials -4.7%) have also been under pressure.
  • US equity futures have tracked higher for most of the session, with the S&P500 up by around 0.60%, tech slightly better.

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