Asian equity heavyweights edge lower

Shanghai lockdown weighs on Asian markets

With some exceptions, Asian equities are edging lower today, mostly driven by the rolling Shanghai covid lockdowns. US equities finished slightly higher on Friday, despite a rise in US yields, but futures on the S&P500, Nasdaq and Dow Jones have eased by around 0.25% this morning in sympathy.

The Nikkei 225 is down 0.35%, with the South Korean Kospi just 0.10% higher. Mainland China equities have retraced early losses, but remain in the red. The Shanghai Composite is 0.10% lower, while the CSI 300 has fallen by 0.65%. Hong Kong has climbed by 1.10%.

Across regional markets, Singapore is just 0.20% higher, while Jakarta is rising IPO fever, climbing by 0.45%, Kuala Lumpur has eased by 0.20%, while Taipei, with high beta to China lockdowns, has slumped by 1.25%. Bangkok is 0.35% higher. Australian markets have followed Friday’s price action in New York, the ASX 200 and All Ordinaries rising by 0.30%.

The negativity initially seen in Asia as China’s nerves increased from the Shanghai lockdowns, has been partially dispelled by the resulting fall in oil prices today. Ironically lower for the same reason. With a light calendar, Asia seems content at the moment to wait and see how the week evolves elsewhere, especially with so much tier-1 data due at the end of the week. A worsening Covid-19 situation in China, and wider restrictions, would be a serious headwind for Asian equities as a whole.

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