Three-Day Rally Fizzles Out

A negative day for equity markets in the Asia-Pac region after a three-day rally. Markets shook off a positive lead from the US where indices hit fresh record highs. In mainland China indices declined by around 1.5% as the tech rebound abates. Other markets are also in the red, though moves are more muted; in Japan the Nikkei 225 is down around 0.1%, in Australia the ASX 200 is down 0.3%, while South Korea saw losses of 0.7% - the BoK hiked rates 25bps during the session, the first major economy to hike rates in Asia. Negative sentiment weighed on US equity futures, e-mini Nasdaq leading the way lower as tech shares in Asia came under pressure. The Jackson Hole meeting, which is due to begin later today, will be key for the direction of risk sentiment, commentary from FOMC Chair Powell on Friday headlines that (now virtual) event.