Lower In Asia; Tech Sentiment Softens After Micron Warning

Virtually all Asia-Pac equity indices are softer at typing amidst underperformance in tech-related names, tracking the tech-led decline on Wall St. after Micron Technology’s warning re: the weakened demand outlook for chips (adding to prior, similar warnings from the likes of Nvidia and Intel).

• Chinese and Hong Kong stocks fell to session lows in the wake of Chinese inflation data that had missed expectations but showed CPI hitting two-year highs, driving down expectations from some quarters re: PBOC monetary easing going forward.
• The Hang Seng deals 2.1% weaker, hitting fresh one-week lows with nearly every constituent in the red at writing. China-based tech struggled (HSTECH: -3.1%), adding to heavy losses observed in the Hang Seng’s finance (-1.3%) and property (-1.6%) sub-indices amidst persistent sector-wide gloom after Hong Kong regulators clarified earlier on Tuesday that there are no plans for the relaxation of stamp duties on home purchases.
• The CSI300 trades 0.9% lower, led by losses in richly-valued consumer staples and healthcare equities. The ChiNext index deals 1.0% weaker at writing, reflecting underperformance in chipmakers in the wake of Micron’s announcement,
• The ASX200 sits 0.2% worse off at writing, with heavy losses in tech (S&P/ASX All Tech Index: -2.4%) countering gains in commodity-related and financial equities.
• The Taiex sits 0.6% weaker at typing, with index heavyweight TSMC (-1.6%) contributing the most to losses.
• E-minis are flat to 0.1% worse off at typing, holding on to the bulk of their losses observed on Tuesday.