Tech Sensitive Markets Lead Declines

Asia Pac equities remain under pressure for the most part. Some smaller markets are outperforming, while Australian equities are close to flat. However, the bigger centers are seeing larger losses, part of this reflects catch up from closed markets yesterday.

• US futures are down close to -0.50%. Focus will be on whether we test below 3600 again for the SPX. Note lows at the start of the month were close to 3570. Overnight comments from Fed Vice Chair Brainard that the Fed needs to be cautious in terms of the outlook, have provided no lasting positive sentiment.
• China markets are also weaker, but mainland bourses are defying broader sell-off pressures. The Shanghai Composite down -0.35% so far in the session. The property sub-index is unwinding all of yesterday's gains, down 1.73%.
• Hong Kong shares are lower as well, the HSI down 1.5%, with tech again driving weakness.
• The Nikkei 225 is off by over 2.6%, the Taiex 4.10%, and Kospi 2.45%. Tech names like TSMC and Smasung have seen sharp losses, no doubt reflecting some catch up from yesterday's holiday.
• Chip/PC demand concerns from US markets late last week continue to weigh on the sector.