Mostly Lower In Asia; Chinese Equities To End Week Lower As Easing Disappointment Lingers

Most major Asia-Pac equity indices are softer at typing following a negative lead on Wall St., after well-covered comments from Fed Chair Powell on a possible 50bp rate hike for the May FOMC saw U.S. equity benchmarks dive below neutral levels in Thursday’s session. Japanese and Australian equity benchmarks lead losses, with EM indices faring a little better across the board.

• The Chinese CSI300 outperformed (relatively) regional peers, sitting a little above neutral levels at typing after paring earlier losses from as low as 1.1%, putting it possibly on track to break a five-session streak of daily lower closes. The move to reverse losses came after reports of China’s securities regulator issuing guidance for institutional investors on to buy more stocks crossed the wires, adding to a speech from PBoC Gov Yi Gang pledging to keep policy accomodative in view of softer economic conditions. The Financials sub-index outperformed, neutralising broad weakness in high-beta equities, with consumer staples (particularly Chinese liquor stocks) and healthcare names leading losses in that sphere. Tech-related names struggled as well, with the ChiNext and STAR50 indices trading 1.0% and 1.6% lower at typing.
• The Hang Seng is 0.6% worse off at typing, on track to close lower on every single day this week. Steep losses were again seen in China-based tech names, with debate re: the de-listing of Chinese equities from U.S. exchanges again doing the rounds in Asia.
• U.S. e-mini equity index futures are 0.2% to 0.3% weaker at typing, rising off their respective worst levels heading into European hours.