Tech Sensitive Bourses Lower, China's CSI 300 Back Tracking Towards August Lows

Regional equities are tracking lower in Asia Pac trade on Friday. Weakness is broad based and follows US and EU losses in Thursday trade. US futures sit around flat in terms of latest levels. Eminis last at 4456.5, lows for the session came in at 4451. Nasdaq futures have followed a similar trajectory, last near 15285 (lows near 15250).

• China shares look set to end the week on a soft note. At the break, the CSI 300 is down 0.80%, near 3728.5 in index terms. August lows just under the 3700 aren't too far away.
• The CSI 300 real estate sub index is down a further 1.05% at this stage, set to end the week down. The MNI Policy team note the authorities could ease housing restrictions further if sales down rebound in coming months. Further easing isn't likely until Q4 though (see this link). China energy stocks are also on the back foot, with higher oil input costs potentially weighing on profitability.
• Note Hong Kong markets have remained closed today due to the rainstorm alert.
• Tech sensitive plays are underperforming in the region, following US losses in Thursday trade (Nasdaq -0.89%, SOX off 2%), as sentiment has been dented by China's iPhone ban for the government sector.
• The Topix is off ~1.00% in Japan, the Kospi -0.60% in South Korea and Taiex -0.20% at this stage.
• In SEA, Thai stocks are trying to move higher, but aren't far away from the 1550 level. Indian stocks are tracking modestly higher at this stage, +0.30%.