Regional Markets Tracking Lower, Firmer US Tech Futures Provide Some Offset

Regional equities are mostly lower, apart from some pockets of strength in HK related to firmer tech related equities. US futures are higher, largely thanks to better earnings guidance from Alphabet and Microsoft late in Tuesday trade in the US. Nasdaq futures lead the way, +1.25%, although we are slightly away from best levels. Eminis are also higher, +0.40% at this stage. Still, regional financial/banking stocks are weaker following sharp falls in this space during the US Tuesday session.

• The HSI is up around 0.60% at this stage, with the tech index up 1.34%. This would be the sub-index's first gain in 7 sessions. Some positive spill over from the US futures move is likely at play. Recent lows also came close to mid-March lows, so technical related support may also be evident.
• Onshore China equities are down modestly, while north bound stock connect flows are +2.27bn yuan, on track for the first lot of inflows since Thursday last week. Onshore media reported that housing curbs may be eased further, and that deposit rate cuts are unlikely to hurt investors. Neither story appeared to shift equity sentiment though.
• Japan stocks have been underperformers, the Topix off 1.15%, with the bank sub-index down as much as 2.4%. This is likely carry over from weakness in US bank stocks on Tuesday.
• The Kospi and Taiex are tracking modestly lower, with some offset likely coming from higher US tech futures.
• Indonesian stocks are higher, +0.55% for the JCI, one of the few bright spots.