Mixed As Chinese Regulatory Worry Rises, Hawkish Fed In View

Most major Asia-Pac equity indices are mixed, largely bucking a positive lead from Wall St. High-beta stocks across the region underperformed, with the spotlight on China-based tech as large-cap Tencent Holdings made a decision to shutter their video game streaming service, fanning familiar fears over regulatory risks.

• The Hang Seng sits 0.6% lower at typing, approaching the week’s worst levels after 3 consecutive lower daily closes. China-based tech bore the brunt of the downward pressure, with the Hang Seng Tech Index trading 2.3% weaker at writing, with steep losses observed in large-caps such as Bilibili (-7.8%), JD.com (-3.4%), and Netease Inc (-2.3%).
• The ASX200 was the sole index to record gains amongst major regional peers, dealing 0.4% firmer at typing, led by outperformance in materials and energy names. On the other hand, the S&P/ASX All Technology Index underperformed, sitting 0.4% worse off at typing, with large-cap Block Inc dragging the index lower.
• U.S. e-mini equity index futures sit virtually unchanged at writing, trading on either side of neutral throughout Asian hours.