Most Regional Markets Tracking Higher, HK/China Shares Down From Early Highs

Regional equities are mixed. The early focus was on HK and China market gains, which were led by the tech sector, on hopes that worst of the tech regulatory crackdown is now behind us. However, gains have been pared as the session progressed. Other markets are mostly higher, with Japan and Australia, NZ, the exceptions. US equity futures are in the red, Eminis last down ~0.15% to be around 4428.

• Eminis bottomed out around the 4422 level in earlier trade, not too far from lows last Thursday around 4420.
• The HS Tech index was up 3.2% at one stage, but now sits up 1.2% at the break, still tracking higher for the first time since last Tuesday. The HSI is +0.78%. Fines for Ant and Tencent are giving hope that the regulatory crackdown on the tech sector is now behind us.
• The CSI 300 was up strongly in early trade, but now sits +0.52% firmer at the break. June inflation data was weaker than expected, underscoring a still soft economic backdrop but raising hopes of fresh stimulus.
• Japan shares are tracking weaker, the Topix -0.50% at this stage, while the Nikkei has lost around 0.70%. The ASX 200 is also weaker, down by 0.25% at this stage.
• SEA stocks are mostly higher, although gains are generally sub 0.50%. Malaysian stocks are slightly outperforming, up 0.60%.