Mixed In Asia As Chinese, Hong Kong Stocks Inch Higher On LPR Cut

Most Asia-Pac equity indices are softer, tracking a negative lead from Wall St. On the other hand, Chinese and Hong Kong stock benchmarks have reversed earlier losses at writing, drawing limited support from the PBOC’s LPR fixing for August.

• The Hang Seng sits 0.2% better off, up from opening ~1.0% lower. The property sub-index (+0.8%) led peers after the PBOC delivered larger cuts to the 5-Year LPR, offsetting sharp losses in the utilities sub-gauge (-2.9%), with the latter dragged lower by ENN Energy Holdings (-10.9%) after reporting H1 results.
• The Chinese CSI300 trades 0.8% firmer at writing after opening 0.4% lower, with gains observed in every sub-gauge. Consumer staples and real estate stocks outperformed, although gains elsewhere were muted, with caution evident re: the smaller-than-expected cut to the 1-Year LPR.
• Keeping within China, agriculture-related stocks have outperformed, reflecting rising worry re: lower domestic grain production amidst extreme weather conditions.
• The ASX200 sits 0.9% weaker, backing away from 11-week highs made on Friday. Virtually all sectors are in the red at typing, with tech stocks leading the way lower (S&P/ASX All Tech Index: -1.9%).
• E-minis deal 0.3-0.5% softer, a little off fresh one-week lows at writing.