Weaker HK Equities Drive USD/Asia Bid, But Limited Reaction Elsewhere

Risk appetite has stumbled further in Asian equities. The major HK indices are lower, with tech off 2%, the main HSI around 1.5%. China industrial profits were -22.9% ytd y/y in Feb. While the LNY period can distort data, the market may have been hoping for better results given the prior -4.0% print and other signs of improved economic activity. A Sinopec earnings miss is also weighing on sentiment.

• Mainland shares are also tracking lower. Sentiment is mixed elsewhere in the region, but most indices are comfortably away form best levels.
• USD/CNH is higher, up through 6.8800, while USD/KRW is back above 1300 for the 1 month NDF.
• AUD and NZD are down, but only modestly and more so for NZD. USD/JPY is higher though, back close to 131.00. US yields are around mid-range for the session.
• US equity futures remain positive, but are off session highs as well.