Hong Kong Rebounds After Early Decline, Regional Equities Lower

Regional Equities are lower as robust US CPI quashes rate cut expectations, pushing yields higher. While Hong Kong equities reversed early losses to trade higher.

• Hong Kong equities are mostly higher today, after opening lower. Investors are assessing whether Chinese authorities' policies and willingness to halt the overall stock rout will be effective. However, recent sell-offs in Chinese equities have been met with swift buying. Post-lunch, equities recover significantly, with the HSI now 0.50% higher, HS Tech up 1.40%, while Mainland property index was at one point down 3% to now just just 0.50% lower for the day
• Japan equities are lower today erasing most of yesterday’s gains. The Nikkei 225 is still nearing all-time highs at levels not seen since 1989. The put-to-call ratio on the Nikkei 225 has dropped even as the benchmark climbed 13% this year, suggesting that bullishness is growing despite technical signals the rally is getting overheated while the most active index option traded in Japan on Tuesday was a call that benefits if the Nikkei climbs above 40,000 in March. The NIkkei is 0.82% lower today while the Topix is currently off 1.25%.
• South Korea equities decline due to stronger-than-expected US CPI causing a tech sell-off. Samsung leads the decline, down 1.60%, while the Kospi trades 1.00% lower.
• Australia equities are also lower today as the ASX 200 trades down .90%, led by financial as CBA fell 3.40% the largest contributor the the move lower. Elsewhere Graincorp fell by 12% after poor earnings guidance
• Elsewhere in SEA, NZ closed 0.67% lower, Singapore is down 0.42%, while Indonesia is closed today due to presidential elections