Mixed Trends, Rising Covid Cases Dampen China/HK Sentiment

Asia Pac equities have been mixed today. Tech sensitive markets have outperformed, while China/HK stocks have faltered somewhat. US equity futures have traded tight ranges overall, currently close to flat across the major indices, ahead of mid-term elections in the US this evening.

• The HSI has tracked sideways for the most part today, struggling to stay in positive territory. Still, we aren't too far from multi-week highs. The tech sub-index is also around flat, just below the 2100.
• The surge in domestic Covid cases onshore in China is likely to push back any dramatic shift in Covid-zero policies in the near term. Today case numbers were above 7.3k, the highest in 6 months.
• The CSI 300 is off by 0.75%, the Shanghai Composite by 0.50% at this stage.
• Tech plays have done better elsewhere in the region. The Nikkei 225 is up close to 1.5%, the Kospi +1.0%. Interestingly, the Kospi is above its 100-day EMA (2383.1, versus 2396 last). This has been a resistance point going back to late September 2021. The Taiex is also higher, adding 1%. These gains are consistent with tech outperformance during the US session overnight.
• The ASX has lagged somewhat, up just under 0.40% at this stage.