Lower In Asia On Underperformance In Tech; U.S. Large-Cap Earnings Eyed

Major Asia-Pac equity indices sit flat to 0.8% lower at typing amidst underperformance from high-beta equities region wide, tracking a similar performance on Wall St. (particularly tech and advertising after Snap’s 39% plunge on Friday).

• The CSI300 sits 0.8% weaker, hitting fresh six-week lows at typing. The overall move lower comes despite a bid in the real estate sector, with the CSI300 Real Estate Index adding 1.9% at writing, with the richly-valued consumer staples and healthcare sub-indices leading the way lower.
• The Hang Seng deals 0.8% worse off, with gains in the property sub-gauge (+1.5%) unable to offset weakness in China-based tech. The Hang Seng Tech Index sits 2.2% weaker, dragged lower by Chinese EV stocks and tech large-caps, with the selloff coming despite FT source reports pointing to China planning a three-tiered strategy to avoid U.S. de-listings.
• The Nikkei 225 deals 0.7% lower at typing, on track to snap a six-session streak of higher daily closes. Major exporters and the IT sector struggled, with the negative lead from U.S. tech weighing on sentiment.
• The ASX200 trades virtually unchanged at typing in a relatively tepid session (perhaps ahead of Wednesday’s Q2 CPI print), seeing steep losses in tech (S&P/ASX All Tech Index:-1.4%) offset gains in the materials sub-gauge.
• E-minis sit flat to 0.1% worse off at typing, a little off their respective lows made on Friday.
• A busy week beckons for equities - 175 companies on the S&P500 will report earnings, headlined by large-caps including Apple, Amazon, and Microsoft. The Fed’s FOMC decision is due on Wed, while U.S. Q2 Advanced GDP will cross on Thu, followed by PCE data on Friday.