China & Japan Modestly Weaker, South Korea Shares Outperform

Outside of higher South Korea equities, and some pockets of strength in SEA, most regional markets are tracking lower at this stage. US equities are a touch higher but have mostly been range bound so far in Wednesday trade. Eminis were last around 4521, while Nasdaq futures are slightly outperforming in percentage terms. This follows weakness in Tuesday trade in the US for cash equities, although the major benchmarks trimmed losses into the close.

• South Korea shares were higher from the open, despite the negative tech lead from US indices on Tuesday. The Kospi is +1.2% higher at this stage, while the Kosdaq is +2%. Retail investors have reportedly supported the market, particularly in terms of the tech sector.
• China and Hong Kong markets started off weaker before recovering ground. Major indices are lower at the break but away from session lows. The HSI close to flat, with China developer Country Garden rebounding from earlier losses. Onshore media reported that tier 1 cities are to discuss easing property restrictions this month.
• In China the CSI 300 sits down -0.22%. This leaves the index very much within recent ranges. July inflation data was close to expectations and the underlying detail, coupled with base effects, suggests headline CPI deflation won't persist.
• In Japan, the major indices are off by around 0.50-0.60% at this stage, with the machinery sector weighing.
• In SEA we are seeing modest gains for Malaysian and Indonesian shares. Indian shares have opened up weaker though.
• The ASX 200 is a touch higher (+0.15%) as CBA leads bank shares higher after a strong earnings result.