ASIA-PAC MARKET WRAP: Asia follows US lower after Republican Senator Rubio added a hurdle for tax reforms; Nikkei choppy after mixed Tankan

Asia stocks were mostly lower as a downbeat tone rolled over from Wall St, where sentiment was pressured on tax reform discord after Republican Senator Rubio said he would not vote for the GOP tax bill unless it expands child tax credit. ASX 200 (-0.2%) closed negative as weakness in its top-weighted financials sector weighed, while Nikkei 225 (-0.5%) was pressured after a mixed Tankan survey but then rebounded amid reports the BoJ is to tweak its language due to dovish dissent. Shanghai Comp. (-0.6%) and Hang Seng (-0.9%) were subdued after the recent quasi-tightening in China and with President Xi also expected to stress the need to curb financial risks at next week’s annual Central Economic Work Conference. Conversely, Indian markets bucked the trend with gains of 0.9% after exit polls showed the country’s ruling BJP retained power in Gujarat with a clear majority and won Himachal Pradesh from Congress in the state assembly elections. Finally, 10yr JGBs were relatively uneventful despite the indecisive tone in Japan, while the BoJ Rinban announcement also failed to spur demand with the total amount at a reserved JPY 290bln in 10yr-25yr+ maturities.

15 Dec 2017 - 05:54- Important- Source: RANsquawk

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