Regional Markets Lower, China Stabilization Headlines Only Briefly Aid Sentiment

Regional Asia Pac equity sentiment is weaker across the board in terms of the major indices. This follows weakness in US equity markets during Thursday trade, as US yields spiked following the US CPI print. We have seen some modest retracement in US yields today, but this hasn't imparted positive sentiment on the region. US equity futures sit a touch higher at this stage, albeit away from best levels. Eminis last near 4386, +0.12% higher for the session.

• There was a brief round of positive impetus as headlines crossed that China is considering launching a market stabilization fund (see this BBG link). However, this hasn't had a lasting impact on sentiment.
• At the break, the HSI is off by over 2%, while the mainland's CSI 300 is down 1.1% (these losses were curbed to -0.70% when the above headlines crossed). This puts the index back sub the 3700 level.
• On the data front, China CPI was weighed down by lower food prices, while exports were slightly better than forecast. Imports were close to expectations, but commodity import volumes were down in the month.
• Elsewhere, tech sensitive plays are mostly down, despite related indices doing better in Thursday US trade. The Topix is off ~1.40%, the Taiex 0.50%, and the Kospi around 0.90%.
• In SEA, we are seeing modest outperformance from the Philippines (+0.25%) and Indonesia (+0.15%). Losses are evident elsewhere, although are under 1%.