Mixed In Asia; KOSPI Hits 20-Month Low

Asia-Pac equity indices are mixed at typing, bucking a positive lead from Wall St.

• The KOSPI has continued its tumble, dealing 1.0% weaker at typing after reversing opening gains, putting it on track for a fourth consecutive day of losses while hitting levels last witnessed in Nov ‘20 earlier in the session. Broader sentiment in the KOSPI continues to be weak amidst the backdrop of recent regulatory efforts to stabilise the stock market, with losses observed in 14 of the index’s 19 sub-industries.
• The Hang Seng Index trades 0.6% lower, dragged lower by underperformance in the financials (-2.0%) and property (-1.3%) sub-indices. Hong Kong Exchanges & Clearing Co (-3.8%) leads the way lower after announcing the launch of a “Swap Connect” between China and Hong Kong, with a BBG analysis suggesting that the initiative may not raise the HKEX’s clearing fees by much.
• The CSI300 deals 0.2% firmer at typing after reversing opening losses, aided by a sustained rally in the healthcare sub-index (+3.7%), as well as by richly valued consumer staples equities paring the bulk of their losses.
• The ASX200 deals 1.2% firmer at writing, with gains observed across virtually every sector. Tech-based large caps such as Block Inc and Xero Ltd lead the bid, adding to moderate gains observed in consumer staples and financials, with the “Big 4” banks sitting ~1.3% to 1.8% better off apiece at writing, making up for lacklustre performance in the materials sub-index.
• U.S. e-mini equity index futures sit 0.6% to 0.8% worse off apiece heading into European hours, a little off their respective session lows, operating comfortably around the upper half of Friday’s range at typing.