Still Tracking Lower Amid Recession Fears

Regional equities are mostly on the back foot, following US/EU losses from Wednesday's session. US futures are also tracking lower through the first part of Thursday's session. Eminis are down ~0.30% at this stage, Nasdaq futures off by 0.40%. Lingering US recession fears are still a driver of sentiment, following progressive US data downside surprises this week.

• Hong Kong equities have been in positive territory today but have struggled to maintain gains. Markets were closed yesterday, so this may reflect some catch up, while the better than expected Caixin services PMI aided sentiment earlier. The HSI is currently around flat at the lunch break.
• Onshore China shares aren't faring as well, the CSI 300 down around 0.30% at this stage. US-China tensions potentially weighing, post the Tsai-McCarthy meeting, but don't look to be a key driver.
• Japan markets are once again close to the worst performers in the region. The Topix off by over 1.2% at this stage. Once again, the cyclically sensitive electric appliances sector is driving the weakness.
• The Kospi has shed just over 1% in line with weaker Tech trends from Wednesday's US session. Net outflows from locals are -$450.1mn so far. Taiwan markets have returned after a 3 day break, off by 0.40% at this stage.
• SEA markets are also tracking lower, but losses are less than 0.5% for the most part.