Modest Losses, As Weaker US Lead & Higher Yields Weigh

Asia Pac equities are mixed, although major bourses are struggling for a positive footing. US futures are lower, roughly -0.3% for the S&P, -0.70% for the Nasdaq at the time of writing. Weaker tech sentiment has been led by Snap, which again delivered a disappointing earnings update late in the US session.

Higher yields, a continuation from the overnight session, has also added pressure. The US remains the focus point (10yr to 4.26%, +3bps for the session), but JGB futures have sold off sharply as well.

A report the US is considering extended its tech ban to China to include quantum computing and AI has weighed on sentiment, although overall losses for HK stocks are modest at this stage.

• The HSI is down around 0.2%, while the tech sub index is around flat, still we are down a further 5% for the week, following last week's 10.30% dip.
• China tech names are lower, although aggregate indices are slightly higher. The CSI 300 +0.15%, the Shanghai Composite +0.50%. The property sub-index is up 1.50%, its first gain for the week. This came after the China regulator announced companies less involved in the real estate market can raise funds in the A-share market.
• The Kospi, Nikkei 225 and Taiex are all lower, with the latter off by 0.75%. South Korean export data for the first 20-days of October, showed a further deterioration in external demand, led by China.
• The ASX 200 is down 0.70%, with bank names the main drag.