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Strong Finish To A Losing Week

EQUITIES

Virtually all Asia-Pac equity indices are higher at typing, bucking a mixed lead from Wall St. on Thursday. High-beta equities across geographies caught a bid, with reduced appetite for havens evident in Asia-Pac dealing. Broader gauges of regional equities however still point to heavy losses, with the MSCI AC Asia Pacific Index down ~4.1% for the week prior to today’s rally.

  • The Nikkei 225 sits 2.5% better off at typing, extending a rise from two-month lows made on Thursday. The move higher comes as sentiment in large caps firmed amidst positive earnings calls from some constituents, mixing with tail-winds from another bout of JPY weakness during the session. On the former, Softbank Group (+11.1%) led large-cap peers higher after reporting earnings, largely unwinding this week’s losses after hitting two-month lows on Thursday.
  • The Hang Seng Index deals 2.0% firmer at typing, recording gains in virtually all sub-indices. China-based tech companies outperformed, with the Hang Seng Tech Index sitting 3.9% higher on gains in familiar large-cap names for another day (Tencent, JD.com etc.). Looking ahead, participants will be keeping a close eye on Baidu, Bilibili, and other Chinese internet technology giants this month, with debate re: their possible inclusion in the main Hang Seng Index during the latter’s quarterly reshuffle doing the rounds, ahead of the decision later this month (20 May).
  • The ASX200 trades 1.7% higher at typing, pulling away from 15-week lows made on Thursday. High-beta tech led gains, with the S&P/ASX All Technology Index rising from two-year lows on Thursday to deal 5.1% firmer at writing, led by a ~13% rise in index heavyweight Block Inc (with the latter unwinding approx. half of Thursday’s loss, initially sparked by the implosion of the third-largest stablecoin in the cryptocurrency space).
  • U.S. e-mini equity indices are 0.8% to 1.3% better off at typing, extending a move off of their respective troughs on Thursday amidst the previously flagged improvement in risk appetite.

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