Tech Leading Region Lower, Some Pockets Of Strength In China Gaming Sector

Regional equities have mostly tracked lower, following the negative lead from US markets in Tuesday trade. Losses have been prominent among tech sensitive plays, as core yields have found a base since the start of the year. US equity futures haven't exhibited a strong trend, with the main indices sitting modestly lower. Eminis were last near 4784 (-0.06%), while Nasdaq futures sit -0.12% lower.

• The Kospi is off 2% following yesterday's highest close since mid 2022. The Taiex is also down sharply, off 1.75% at this stage. The higher more in US real yields and some paring of early 2024 US rate cut expectations has taken gloss of the tech space in recent sessions.
• Hong Kong markets are also down, led by the tech sector. The HSI sits -1.22% weaker at the break. The tech sub index is off by nearly 2.4%.
• In China, the CSI 300 sits 0.51% down at the break. There have been some pockets of strength in the gaming space. This follows reports of a regulator who oversees the sector being removed in China. Tencent and NetEase curbed earlier weakness in Hong Kong, but this hasn't improved aggregate index performance.
• Another property developer reportedly hasn't fulfilled payments which were due for a dollar bond at the end of last year (per BBG).
• In SEA, losses are generally more modest, with most bourses off by less than 0.50% at this stage.