Japan Markets Weaken, China/HK Dips Supported

Asia Pac equities are a mixed bag. Japan bourses are noticeably weaker, unwinding some of the recent gains. China/HK equities started weaker, but are back in positive territory now. US futures remain in the red back are away from lows for the session, with more focus on the continued pull back in US yields.

• The Nikkei 225 is tracking around 1.5% lower at this stage. This is in line with a firmer JPY, which has rallied beyond pre-BoJ levels. We were 3.75% higher over the last two sessions, so this is only giving back some of those gains.
• The HSI was down 1.5% in early trade, as tech sold off 2.5%, but is now back in positive territory. A health briefing will be held later. HK will end quarantine for covid cases from Jan 30.
• The CSI 300 is +0.20% currently, around highs for the session. The index looks to be consolidating ahead of the LNY holiday period after breaking higher late last week/earlier this week.
• Elsewhere the Kospi is modestly firmer, +0.25%, despite negative tech leads from the US session on Wednesday. Offshore investors have added +$197.9mn to local equities today.
• The ASX 200 is up 0.50%, despite softer employment data locally. Bank stocks are higher, with some optimism we are getting closer to the end of the hiking cycle.