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China Shares Testing 200-Day Break To The Downside, Japan Stocks Higher

EQUITIES

Regional equities are tracking mixed, although Japan stocks continue to outperform. Gains and losses across the region are under +/-1%, so ranges have been more modest compared to earlier in the week. US futures are lower, with Eminis off by around -0.1% at this stage, although we were -0.3% at the lows. Nasdaq futures are slightly weaker.

  • China stocks are lower with the CSI 300 off by around -0.30% at this stage. Telecommunication stocks are weaker, which follows reports from yesterday that the Netherlands will introduce rules to restrict semiconductor exports. The downside miss on CPI for Feb didn't do much to boost equity sentiment (via the easing channel).
  • The CSI 300 is close to its simple 200 day MA (4035), with current index levels near 4020.
  • The HSI is slightly firmer but remains within recent ranges. The tech sub-index is finding some support ahead of the 100-day MA.
  • The Nikkei 225 is +0.50% higher, while the Topix is up 0.75%. Bank stocks are outperforming, with the sector potentially seen as a hedge if we see another BOJ surprise tomorrow (which drives local yields higher).
  • Elsewhere the Kospi and Taiex are slightly weaker, despite positive tech leads from US trade on Wednesday. In SEA, trends are mixed.

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