Lower In Asia; China-Based Tech Loses Early Bid

Virtually all major Asia-Pac equity indices are in the red at typing, following a negative lead from Wall St. on Monday. Equity indices in Hong Kong and China fell to a lesser extent than their major regional peers, but remain at their lowest levels for the month amidst an ongoing COVID outbreak in China and elevated worry re: regulatory crackdowns.

• The CSI 300 sits 0.4% lower at writing, operating at session lows after struggling to stay above neutral levels throughout Asia-Pac dealing. A statement made late on Monday by the China Securities Regulatory Commission (CSRC) highlighting government support to stabilise expectations of listed companies and investors as well as to encourage share buybacks has done little to reverse the CSI300’s fortunes on Tuesday, with the index currently trading at two-week lows.
• Keeping within China, worry re: regulatory hurdles for tech stocks (both China and Hong Kong-listed) remains elevated despite the authorities on Monday approving their first batch of 45 new video games in nine months, with observers noting that none of the video games were from Chinese internet gaming giants Netease and Tencent. The duo nonetheless caught a bid on the news, bucking the broader trend of losses in the tech space, with the Chinese STAR 50 sitting 1.7% worse off and the Hang Seng Tech Index reversing opening gains to trade 0.8% lower at typing.
• The Australian ASX200 deals 0.6% lower at writing, printing a touch above two-week lows made earlier in the session. Virtually all sub-indices are in the red with tech names leading losses, seeing the ASX/S&P All Technology Index sit 1.1% worse off at typing. Energy-related equities broadly underperformed as well, as major crude benchmarks have traded a touch above multi-week lows made on Monday.
• U.S. e-mini equity index futures deal 0.4% to 0.5% softer at writing, sitting a touch above session lows heading into European hours.