China Rebound Stalls, Mixed Performances Elsewhere

Asia Pac equities have been mixed, with the onshore China market rebound stalling, while HK stocks continue to recover. US futures have stayed in positive territory for much of the session (0.30-0.60% ranges), following cash losses overnight, particularly in the tech sector.

• Mainland China indices are modestly lower at this stage, the CSI 300 off 0.1%. September industrial profits fell YTD y/y by 2.3%, with weakness fairly broad based. Wuhan has also locked down parts of the city amid fresh covid cases. It's expected the lockdown will last until Sunday. President Xi did state that China is willing to find ways to get along with the US.
• In contrast, the HSI is up around 1.7%, with tech related companies gaining 3.00%. Note the China Golden Dragon index gained a further 7.19% overnight, recouping more of Monday's 14.43% dip.
• The Kospi is up a further 1.40%, despite an earnings miss from Samsung Electronics. BoK stepped up efforts to stabilise credit markets, by expanding the type of bonds it will accept as collateral. The Taiex is also higher, +1.3%. The government is planning to work with industry to support chip sector development amid US-China tensions in the sector.
• The Nikkei 225 has underperformed, -0.25%, with the banking sector weighing. Tomorrow's BoJ decision looms as the next major risk event for these markets.