Lower Post-CPI; Australian Tech Gets Crushed

Most Asia-Pac equity indices are lower at typing, tracking a negative lead from Wall St. High-beta stocks across the region broadly sold off following Wednesday’s above-expectations U.S. CPI reading, with the latter largely confirming recent hawkish Fed tightening expectations, sending that basket of rate-sensitive stocks lower in Asian hours.

• The Hang Seng Index sits 1.1% worse off at typing, with debate re: capital outflow doing the rounds after the HKMA stepped in to intervene in the HKD for the first time since 2019. The Hang Seng Tech Index struggled, dealing 1.5% softer at typing on losses in Tencent, Alibaba, Baidu. A note that major internet platform companies broadly pared losses mid-way through the morning session, following a report that Chinese officials are due to meet with business executives from the country’s largest private-sector companies next week, with Chinese Vice Premier Liu He reportedly scheduled for attendance as well (BBG sources).
• The CSI300 has risen from a 0.7% lower open to sit just below neutral levels at writing, heading into the mid-session break. Remarks from senior PBOC and government officials earlier in the session emphasising supportive policy for “weak links” in the economy (from the PBOC) and “incremental policies” to support growth (from the government), lent a bid to equities, balancing against broader weakness amongst real estate stocks.
• The ASX200 sits 1.6% softer, with the S&P/SPX All Technology Index dragging overall sentiment lower, shedding 5.9% at typing. The bulk of the losses are attributed to Block Inc (-15.6%) and Xero Limited (-11.3%), with the latter tumbling after reporting full-year results for FY22. Block Inc on the other hand, likely tracked a broader decline in the cryptocurrency space due to the spectacular implosion of the stablecoin UST (third largest by market cap), with large-cap crypto token LUNA diving to ~$0.35 at typing (started the week at ~$64).
• U.S. e-mini equity index futures are 0.1% to 0.3% firmer apiece, albeit operating just above their respective cycle lows made earlier in the session.