No Positive Follow Through To Yesterday's Hong Kong/China Equity Surge

Regional equities have been mixed ahead of the upcoming US Fed decision. US equity futures are close to flat paring early losses. Eminis were last near 4596.5, Nasdaq futures a touch weaker at 15657. We are down from late Tuesday session NY highs, amid a mixed earnings backdrop post the US close.

• Hong Kong and China equities haven't been able to rally further after posting strong gains yesterday. Losses are relatively modest at this stage, but the market may have been hopeful of further positive momentum in the wake of the recent Politburo meeting.
• At the break the HSI is down 0.79%, with the tech sub index down 1.38%, although we were 6.04% higher yesterday for this index. Jack Ma's backed Ant Group is planning a restructuring that will potentially pave the way for reviving the Hong Kong IPO.
• The CSI is off by 0.34% at the break, with the Shanghai Composite down by a similar amount. The properties sub index has continued to recover though, adding a further 0.87% so far, which follows yesterday's +8% gain.
• Japan stocks are close to flat at this stage. South Korean shares are among the weakest performers. The Kospi is down over 1%. Samsung has been weaker, along with motor vehicle companies. Offshore investors have net sellers of local stocks today (-$116.2mn).
• Australian stocks have outperformed, the ASX 200 +0.80%. The weaker than expected Q2 CPI print has aided sentiment around the RBA outlook.
• In SEA sentiment is mixed, with Thailand and Philippines bourses lower, but positive trends elsewhere.