Regional Markets Lower, No Let Up For China Related Equity Weakness

Regional equities are mostly lower in Tuesday Asia Pac trade. Weakness in China/HK markets remains a focus point. Only Indian markets are tracking higher at this stage. Weakness follows a negative US lead from Monday's session, after a recovery in US yields. US equity futures are weaker in the first part of trade today, Eminis last 4567 (-0.20%), while Nasdaq futures are down 0.24%. A tick down in nominal US yields in Tuesday trade hasn't aided sentiment much.

• At the break, the HSI is off 1.76%, the index near 16354, which is fresh lows back to Nov last year. The HSTECH index is off by slightly more, down 2% at this stage.
• The better Caixin services PMI print in China has done little to improve sentiment. The CSI 300 index is off 0.80% at the break, with the real estate sub index down a further 1.62%, tracking lower for the 8th straight session.
• WuXi Biologics weak guidance has continued a run of generally softer earnings outcomes, which has weighed on broader sentiment, amid concerns of a still tepid China economic recovery.
• Comments from the regulator after yesterday's close stated that it will ensure the stable operation of capital markets.
• Other NEA markets are lower, the Nikkei 225 off over 1%, South Korea's Kospi -0.35%, the Taiex -0.70%, following some tech equity underperformance on Monday.
• SEA markets are weaker, although losses are under 0.50% at this stage for most markets.
• India remains an outperformer, with the Nifty +0.40% in early Tuesday trade.