Asia Pac Equities Slump, China's CSI 300 Close To 2022 Lows

There are few positives in Asia Pac in Thursday trade to date. The major markets are down close to 2%. The combination of carry over from negative US/EU equity moves on Wednesday, coupled with higher US yields, continues to weigh on broader sentiment. US futures have dipped as the session progressed, Eminis now off around 0.20%, last near 4335. Nasdaq futures are off by -0.15%.

• Fresh highs in US yields, with the curve continuing to steepen is aiding USD sentiment and weighing on equity risk appetite. This comes ahead of a Powell speech in NY later on Thursday, which will be closely watched.
• The weakness continues in China equities. The CSI 300 sits off by a further 1.6% at the break, down near 3550 in index terms. Late October 2022 lows just under 3500 are within sight. September house prices fell -0.30% m/m, the same pace as August, although we saw a slightly larger number of cities record falls versus August (54 compared to 52 prior). The HSI is off nearly 2% at the break.
• Japan and South Korean stocks are down sharply. The Kospi -1.80%, slightly away from session lows. Broader tech related headwinds are weighing (offshore investors have sold $201.2mn of local equities so far today). As expected, the BoK held rates steady at 3.50%.
• Taiwan's Taiex is down modestly (-0.15%), outperforming regional trends.
• All markets in SEA are weaker, although losses are less than 1% for the most part (Singapore the exception).