Treading Water After Rally

Equity markets in Asia struggled to find decisive direction, major markets hovering between minor losses and gains after a strong start to the week. In mainland China major markets are broadly flat, the PBOC injected a net CNY 40bn of liquidity into the system via OMO's to maintain liquidity into month end. Markets in Japan also hovering around neutral, Japan's Covid-19 task force may formalise the declaration of emergency for another eight prefectures today. In the US futures are slightly lower, giving back some of the rally this week. German Ifo survey, flash U.S. durable goods as well as comments from Fed's Daly & ECB's de Guindos take focus from here, while participants await Fedspeak out of this week's Jackson Hole meetings looking further ahead.