China Shares Tracking Lower, Positive US Futures Aiding Sentiment Elsewhere

Regional equities are presenting a mixed backdrop in Wednesday Asia Pac trade to date. China equities have tracked lower in the first part of trade, but HK shares are higher. Other parts of the region are mixed. A positive US futures backdrop, with Eminis last tracking around 4410 (+0.25%) and Nasdaq futures +0.35% has helped sentiment at the margins.

• A lot of the Wednesday US stock market focus is likely to rest on Nvidia's results, with bullish sentiment around the AI sector a key underpinning of the rally seen through parts of Q1/Q2 of this year in the tech related space.
• China markets haven't been able to see positive follow on after yesterday's late session rally. The CSI 300 is back off by ~0.70% at the break, with the index around 3731, which is above intra-day lows from yesterday near 3700. A number of onshore media articles have highlighted potential support points/regulatory changes for local equities (see here and here for more details).
• The HSI is faring better, the index up 0.35% at the break. Trade has been volatile, while the tech sub index is modestly underperforming, albeit up from session lows.
• Japan stocks are a touch firmer, the Topix last +0.10%. Bank stocks were weaker in early trade (following US bank weakness in Tuesday trade post rating downgrades), but the firmer US futures backdrop has helped turn sentiment around.
• The Kospi is down 0.55% at this stage, while the Taiex is faring better, +0.70%.
• In SEA, Thai stocks are a touch higher, following yesterday's +1% gain as the political impasse came to an end. Trends are mixed elsewhere.