Mostly Lower Ahead Of FOMC; Chinese Tech Hit By SEC Probe Of Didi

Asia-Pac equity indices trade mostly lower at typing, bucking a positive lead from Wall St. as Chinese and Japanese markets remain shuttered for national holidays.

• The Hang Seng sits 1.3% softer at typing after opening in the red, with a fresh round of weakness in China-based tech spurred by Chinese ride-hailing giant Didi Global (ADR -7.0% after hours) revealing that the U.S. SEC was investigating its 2021 IPO. Large-caps such as Alibaba Group and Tencent Holdings fell by >3% each come the Asian session, spurring a 3.1% decline in the Hang Seng Tech Index. Meituan (-5.9%) led losses amidst China-based tech names, contributing to the gloom in the sector following news of a non-executive director selling a large part of his stake in the company at a discount to its current price.
• The ASX200 fares a little better than most equity index peers, sitting a little below neutral levels at typing. The Australian equity benchmark has reversed earlier gains on broad weakness in tech stocks, with the S&P/ASX All Technology Index dealing 1.0% softer at typing, with heavyweights Block Inc and REA Group underperforming. Materials stocks broadly struggled with losses observed in the major miners (BHP, Mineral Resources, Rio Tinto), while financials outperformed, led by gains in the “big four” banks.
• U.S. e-mini equity index futures are back from session highs, dealing flat to 0.1% higher at typing.