Regional Equities Tracking Weaker Ahead Of US CPI

Regional equities are tracking lower in the first part of Wednesday trade. This follows weakness in Tuesday US trade, with the Nasdaq unperforming post fresh product launches from Apple. US futures have ticked marginally lower in the Asia Pac session today. Eminis are off 0.13% to 4508, while Nasdaq futures are close to 0.10% weaker at this stage. Caution ahead of the upcoming US CPI print may also be a factor.

• At the break, the CSI 300 is down just over 1%, putting the index back to 3721 in index terms. The tech sensitive ChiNext is down around 1% as well at this stage, set for lows going back to April 2020.
• Broader tech concerns are evident in sentiment given offshore moves. A BoFA survey also noted that China's real estate market is viewed as the number 1 risk in terms of a potential credit event.
• The property sub sector is doing better today in the equity space, with Country Garden winning maturity extension for another onshore bond. The Hang Seng mainland properties index is +0.94%, while the CSI 300 real estate index is still down modestly though.
• Elsewhere, the Topix is down around 0.20% at this stage, while the Kospi is only down modestly. THe same applies for the Taiex. China's State Council has approved the Fujian coastal province to foster closer development ties with Taiwan. This may be helping sentiment at the margins.
• South East Asia markets are mostly weaker, although losses are modest at this stage. The Thai SET index off 0.55%, despite the government considering a 5-month waiver or China tourist visa's.