China Indices Hit Fresh Multi Year Lows Before Stabilizing Somewhat

Regional equities are mixed in Asia Pac markets for Thursday trade. China onshore markets sit down at the break, after hitting fresh multi-year lows in earlier trade. US equity futures sit modestly lower after cash losses in Wednesday trade. Eminis were last near 4766, off a little over 0.1%, Nasdaq futures are down by a similar amount.

• China onshore equity weakness continues. The Shanghai Composite off more than 2% at one stage, but now at -1.59% at the break. This put the index at fresh lows back to early 2020 and through 2800.
• The move lower looks more flow/technically driven than any fresh fundamental catalyst. Still, there is disappointment over lack of fresh stimulus with the MLF held steady earlier in the week and recent comments by Premier Li in Davos that growth targets can be achieved without massive stimulus.
• The CSI 300 is off 0.63% at the break, also up from session lows. We are still back at 2019 levels from an index standpoint though.
• Sentiment elsewhere is more mixed. Japan stocks are modestly higher, the Nikkei 225 last +0.40%. The Taiex is up 0.40%, after officials called for calm in light of recent falls. The Kospi is also up around 0.30% at this stage.
• Indian shares have opened weaker. The Nifty off 1%, weighed by the banking sector post HDFC results.
• In SEA, trends are mixed. Malaysia and Philippines are down, but positive trends are evident elsewhere.