Japan, South Korea & Taiwan Outperform, China/HK Stocks Down Ahead Of Key Earnings

Regional equity trends are once again mixed. China and HK shares track lower, but Japan markets are still outperforming, while South Korea and Taiwan bourses have also rallied today. It has been mixed in South East Asia. US futures are modestly higher, Eminis last around 4131, ~+0.20% higher. Nasdaq futures doing slightly better at +0.25%. Some optimism a debt deal can be reached aiding sentiment at the margins.

• The HSI is down 0.55% at this stage, the index backing away from the 20000 level for now. Carry over from weaker China data yesterday, which has prompted some sell-side analysts to cut their 2023 growth outlooks, has weighed. Market participants will also be watching earnings results from Tencent, which could come later today and Alibaba, which will be out tomorrow.
• The CSI 300 is also lower, off by 0.35% at the break. This puts the index back sub its 200-day MA (3987.09, versus last index levels at 3964.2). Similar headwinds are weighing on China mainland stocks, with a weaker FX rate (USD/CNH breaking back above 7.00) likely a negative as well.
• Japan stocks are still outperforming, the Topix +0.30% higher at this stage, while the Nikkei 225 has breached the 30000 level.
• Taiex is +1.20% firmer, while the Kospi has gained 0.60%, amid some tech related outperformance from Tuesday's US session.
• The ASX 200 is down by 0.50%, while in SEA Thai stocks continue to move lower, off another 0.70% so far.