Major Indices Tracking Lower, Post Wall St Losses

Regional equity markets have mostly tracked lower in Asia Pac today, in line with US and EU losses from Tuesday's session. The US debt impasse continues to hang over markets, with little fresh news late Tuesday evening in the US. US futures are a touch higher though, eminis last +0.15% near 4165, while Nasdaq futures were up by around the same amount.

• China stocks continue to weaken, the CSI 300 down a further 0.52% at this stage, albeit up from session lows. YTD gains for the index are just about wiped out, while we have seen a further 1.75bn yuan in stock outflows so far today (coming after yesterday's chunky ~8bn yuan in outflows). Tech headwinds amid clamps on investment in China from outside countries, coupled with economic woes continue to drive equity underperformance.
• The HSI is also weaker, down close to 1% at this stage. Similar drivers are at play, with the HS TECH index off by a little over 1%. The index is back close to 2023 lows. Alibaba is cutting staff following the recent earnings disappointment.
• Japan stocks are also giving back some of their recent gains, the Topix down a further 0.25% at this stage, following yesterday's 0.66% dip. Electronic related plays are the main drag on the index.
• The Kospi rally has stalled, although the index is only down a touch, while the Taiex is -0.60% at this stage.
• There are some better trends in SEA, but only at the margin. Thai's SET is +0.45%, recovering further from recent lows.