Asian equities could trade slightly positive after a stable performance for global major stocks indices on Tuesday as many participants returned from the holiday weekend and lack-of-concerning macro commentary from corporates after earnings releases so far. For the tech sector it is worth watching how stocks are going to perform after a surprise decline in Netflix subscribers, which provided some headwinds for future after-hours.
On the policy radar, the Chinese Yuan is trading pressured ahead of the potential Loan Prime Rate cuts today. Expectations are mixed after the PBoC refrained from cutting the Medium-Term Lending Facility rate last week and the smaller than anticipated banks’ reserve requirement ratio cut. Worth noting that alongside easing hopes from China to boost local and global growth. China’s ‘COVID Zero’ policy is still weighing on sentiment as Chinese CDC experts said they should not expect the COVID pandemic to be over soon and urged the removal of unreasonable checkpoints near Shanghai. On the geopolitical front, traders will be keeping an eye on the Russia/Ukraine theme as the White House said there could be new sanctions on Russia sometime this week.
