Regional equity markets were sharply lower...>

STOCKS: Regional equity markets were sharply lower in early Asia-Pacific trade,

after the S&P 500 & DJIA moved into negative territory YTD on Wednesday. Sources

highlighted huge stop selling in ESZ8 at around 2700-2680 on Wednesday, with

CTAs playing a big part on the stop driven sell off. The source suggests similar

flows may be evident if the sell off accelerates.

- The major regional indices now trade off of worst levels, aided by more stock

supportive rhetoric from Chinese policymakers/regulators, but are still sharply

lower on the day.

- The Nikkei 225 shed 2.8% in the morning session, with the CSI 300 & Hang Seng

1.9% & 1.4% lower respectively, while the ASX 200 trades 2.2% lower last.

- Extra regional pressure has been evident after South Korean GDP rose at the

slowest Y/Y pace since 2009, with the KOSPI 2.2% lower at writing.

- U.S. index futures now trade positive on the day following the aforementioned

Chinese rhetoric.