Most Regional Markets Tracking Lower, China Equity Longs Viewed As Crowded

Regional equities are on the back foot. The risk off tone evident in the USD space has likely seen some negative spill over, with fears of a higher for longer Fed the main headwind for risk appetite. A number of specific news flow items have also likely dented sentiment in specific markets today. US futures are lower, with eminis down 0.40%, the Nasdaq off by 0.50%, at this stage.

• The HSI is down by -1.3% at this stage, while in China the CSI 300 is off by 0.43%. The Bank Of America Global Fund Manager survey highlighted that for Feb 23, long China equities is now viewed as the most crowded trade (replacing the long USD trade from Jan).
• Such positioning may be a factor limiting further gains. The HSI China Enterprise Index is now 10% off its Jan highs, so we may already be seeing some adjustment.
• Renowned investor Warren Buffet has also cut his stake in Taiwan semiconductor manufacturer TSMC in reported filings. The Taiex is down 1.45% so far today. The Kospi is down 1.40%. Higher core yields will also be weighing on the tech space all else equal.
• Losses elsewhere have been more modest, but only Thai and NZ shares have managed to post modest gains today. Indian markets are also attempting to push higher.