Softer As Chipmaker Sentiment Sours

Most major regional equity indices are >1% softer at writing, building on a negative lead from Wall St. in a session that saw sentiment sapped by headlines re: China’s full lockdown of Chengdu, adding to bearish pressure from a sell-off in U.S. chipmakers in Wednesday’s post-market NY session.

• The Hang Seng deals 1.5% softer after opening lower, hitting fresh session lows on news of Chengdu’s lockdown, with >85% of the index’s constituents in the red at typing.
• China-based developer stocks fared a little better despite early data from the top 100 developers on Wednesday pointing to slumping new-home sales (-32.9% Y/Y). The Hang Seng Mainland Properties Index deals 0.3% firmer (back from as much as 1.4% higher), while the CSI300 Real Estate Index has added 2.5%.
• The CSI300 bucked the broader trend of losses, dealing 0.1% firmer with the energy sub-index (+4.1%) leading gains after the addition of several stocks to the FTSE China 50 and A50 indices, offsetting some underperformance in high-beta consumer staples (-0.7%).
• The Nikkei 225 sits 1.6% worse off at writing on losses across virtually every sector, with energy (-3.0%) and IT (2.6%) stocks underperforming by the largest margin, reflecting weakness in crude prices and semiconductor sentiment (following announced U.S. restrictions on some chip exports to China).
• E-minis are 0.4-1.2% softer at writing, operating around session lows, with NASDAQ 100 contracts leading losses.