Hong Kong & Japan Weaken, Firm Gains For South Korean & Taiwan

Equity sentiment is mixed in Asia Pac markets in Tuesday trade to date. Japan and Hong Kong markets are weaker. Most other major markets are higher. US equity futures have been range bound and currently sit a touch weaker. Eminis were last near 4561 (flat), Nasdaq futures are at 15995 (off 0.10%).

• Hong Kong markets sit lower at the break, off 0.60%. Familiar headwinds in terms of earnings concerns and property headwinds are weighing. SCMP noted that the Beijing small cap (BSE 50) index slumped as the authorities looked to curb sharp recent gains. The Beijing Stock Exchange also stated it was untrue that the exchange asked major shareholders not to reduce holdings (BBG).
• PBoC Governor Pan spoke HK, he played down the risks from real estate, stating spill over to the financial system was limited. The economy should achieve its growth target in 2023 as well, while risks from local government debt levels were also contained at an aggregate level.
• The CSI 300 is around flat at the lunch time break.
• The Kospi (+0.7%) is doing better led by Samsung gains. Taiwan's Taiex is also up firmly, over 1% led by the semi conductor sector.
• Japan's markets are lagging, with the Topix off 0.50%, the Nikkei -0.35%. A further rally in the yen (+0.35%) is likely weighing.
• In SEA trends are mixed, Singapore and Malaysia stocks off modestly, but mostly positive gains elsewhere.