Tracking Lower, HSI Recovers, As HK Budget Supports Households

(MNI Australia) Regional equities are mostly tracking lower, in line with sharp falls on Wall St from Tuesday's session. US futures are slightly higher so far today (+0.20% for eminis, +0.25% for the Nasdaq) but this hasn't aided sentiment.

• HK stocks have recovered from earlier losses, the headline index back to around flat currently. Headwinds persist as the index flirts with correction territory, but sweeteners in the HK budget, announced today, around consumption vouchers and homebuyer tax cuts, have turned sentiment around.
• China shares are tracking lower, the CSI 300 off by a little over 0.65% at this stage. Onshore China media reported China President Xi Jinping calling for more homegrown equipment and software, as well as basic subject research. Market concern around US-China tensions likely remains in the background.
• Tech sensitive plays are under pressure. The Kospi off by 1.60%, with offshore investors selling $339.2mn of local shares so far today. The Taiex is slightly better, at 0.87%, while the Nikkei 225 is down by 1.25%. This follows sharp moves lower in tech indices for Tuesday, as core yields rose.
• Other major markets are mostly tracking lower. The JCI and PSEI off by around 1.25% at this stage. NZ stocks also close slightly lower, as the RBNZ stayed the course raising rates by 50bps and keeping the terminal rate expectations at 5.50%.