** China's blue-chip CSI300 Index dropped 0.2% by the lunch break, while the Shanghai Composite Index lost 0.1%.
** Meanwhile, both Hong Kong's Hang Seng benchmark and the China Enterprises Index fell 0.8%.
** The United States warned China of serious consequences
were it to provide arms to support Russia's invasion of Ukraine,
heightening geopolitical tensions.
** U.S.-China relations are the dominant uncertainty
weighing on investors' minds, Goldman Sachs said, citing its
investors' feedback. The bank noted, long-duration capital
managers are somewhat hesitant to deploy fresh capital to work.
** Last week, foreign inflows via the China-Hong Kong Stock Connect recorded net weekly outflow for the first time this year, implying investors are holding back and the re-opening momentum is likely slowing.
** This week, the focus will be on the China PMI print and the kickoff of the National People's Congress. Investors are waiting for clues from the PMI print and policy signals.
** Morgan Stanley expects NBS manufacturing PMI to increase to 50.5 in February from 50.1 in January as domestic supply and demand likely improved amid ongoing business normalization and infrastructure easing, while exports likely remained a drag.
** CSI food and beverage rose 1.2%, while
semiconductors declined 1.4%.
** Hang Seng healthcare tumbled 2.0%, materials lost 1.9%, and finance slumped 1.2%.
** Haidilao soared 13% as the hotpot restaurant
chain announced last Friday that its net profit for 2022 will
not be less than RMB 1,300 million, making it no longer a
loss-making entity.
(Reporting by Shanghai Newsroom; editing by Eileen Soreng)
