Most Asia Pac Markets Down, Hong Kong Shares Off By -3%

Regional equities are by and large in the red. Losses have been largest for Hong Kong stocks. The HSI off by over 3% at this stage, amid multiple headwinds. Japan stocks are also weaker. US futures are tracking lower at this stage, with losses moderately accelerating in the Asia Pac afternoon session. Eminis were last -0.35% around 4468. This is fairly close to Wednesday session lows. Broader sentiment has been weighed by higher US yields, post the FOMC minutes from Wednesday.

• The HSI is off by a little over 3% at this stage. Property woes are weighing, with recent trading halts in bonds for state back Sino-Ocean cited as one factor. The tech sub index is also down, off by close to 2.4% at this stage. The HS China Enterprise index is also down sharply, off by 3.55%, with China banks suffering.
• The authorities are also reportedly halting China banks from buying free-trade zone bonds, which is expected to impact LGFVs.
• Japan stocks are also weaker, with the Nikkei 225 down by 1.80% at this stage. Weakness is evident in tech related plays, while Daiwa notes that ETF managers may sell shares to pay for dividends.
• The Kospi is down by near 0.90% at this stage, but the Taiex is faring worse, off by 1.60%, following a sharp pull back in the SOX during Wednesday trade.
• In SEA, only Indonesian stocks are higher at this stage, but gains are modest. Elsewhere losses are generally under 1%.