Japan Weaker Following Negative US/EU Lead, Parts Of SEA Outperform

Most regional indices are tracking lower in Thursday trade. We had the weaker lead from US/EU markets in Wednesday trade, although this hasn't been uniformly negative for the region. US futures were higher in the first part of trading but are back close too flat now. Eminis were last just under 4539, earlier highs were at 4547.50. Nasdaq futures sit a touch weaker versus opening levels.

• Japan stocks have felt the negative Wednesday lead from major offshore markets. The Topix s off by ~1.0% at the stage, while the Nikkei 225 is -1.2% lower. A continued rise in onshore yields, which the BoJ has tried to counter with another unscheduled bond buy, could also be weighing on sentiment.
• At the break, the HSI is down a touch, as is the CSI 300. Earlier we saw a spike in the HSI on the back of the Caixin services PMI beat in China, however, there was little follow through. The HSTECH index is modestly outperforming at +0.47%, but we were +1% higher at one stage.
• Evergrande Property Services resumed trading for the first time since March 2022, with the stock down sharply, losing nearly half its value. Morgan Stanley also shifted China stocks back to market-weight from over-weight.
• Morgan Stanley upgraded India to over-weight. Indian bourses are close to flat at this stage.
• South Korean shares have traded resiliently in the face of tech headwinds. The Kospi sits 0.50% lower, while the Kosdaq is around +0.25%. Taiwan shares are closed today due to a Typhoon.
• In SEA, Philippine shares at +1% higher, while Indonesian shares are +0.70% higher. Other markets are weaker though.