China/HK Equity Rebound Stumbles Again

Asia Pac equities are mostly lower, following sharp falls on Wall St into the close, as Fed Chair Powell delivered a hawkish press conference. US futures are trading modestly higher, +0.20% to 0.30% at this stage, which is helping keep some markets away from worst levels. China health officials an adherence to covid zero policy has also weighed on sentiment.

• HSI is off by close to 3%, unwinding part of the previous two sessions near 8% rally. The tech sub-index has slightly underperformed, down just over 4% at this stage.
• The CSI 300 is down by over 1.2%, the Shanghai Composite by 0.63%. Daily covid case numbers are now above 3k, while as outlined above, China health authorities appeared to push back on recent social media posts that suggested a shift in the covid policy could be coming. The Caixin services PMI also came in weaker than expected, 48.4, versus 49.0 forecast and 49.3 prior.
• The Kospi was down sharply at the open, but dips sub 2300 have been supported, with the index last at 2330 (-0.30% for the session). A barrage of missile launches yesterday, plus a possible ICBM test launch today, hasn't dented sentiment. The Taiex has underperformed the Kospi, down over 1.1% at this stage, but in line with tech losses overnight.
• Japan markets are closed today, while the ASX 200 is off by nearly 1.8%.