Mostly Lower As Tsy Yields Tick Higher; China-Based Stocks Slump

Nearly all Asia-Pac equity indices trade lower at writing on a mixed lead from Wall St. Tech-related names across the region are broadly weaker amidst evident worry re: inflation, with China-based tech coming under pressure over concerns of renewed regulatory crackdowns.

• The Hang Seng deals 2.5% softer, with virtually all constituents in the red at typing. Steep losses were observed in technology-related large-caps after the Chinese authorities released guidelines calling for strengthened anti-monopoly efforts and crackdowns on “unfair competition” late last week, with the Hang Seng Tech Index trading 4.0% lower at typing to hit fresh three-week lows.
• The Chinese CSI300 sits 2.4% worse off at writing, with large-cap consumer staples names (particularly liquor giant Kweichow Moutai Co) leading the index lower. Worry re: regulatory headwinds have also returned to the tech equity space, with the Chinext and STAR50 dealing 3.3% and 3.0% softer at typing. A note that Chinese equities have found little relief from the Chinese State Council’s statements issued late last Wednesday on the usage of multiple monetary policy tools (albeit unspecified) to support the economy, with most Chinese equity benchmarks trading lower since then.
• The Australian ASX200 is virtually unchanged, being the sole major equity index to deal above neutral levels at writing. Strength in consumer staples and financials-based names was countered by weakness in tech equities, with the S&P/ASX All Technology Index dealing 0.8% lower at typing.
• U.S. e-mini equity index futures sit 0.5% to 0.8% softer at typing, operating just above their respective session lows as U.S. Tsy yields across the curve have moved higher in Asia.