Worry surrounding the Hong Kong security...>

EQUITIES: Worry surrounding the Hong Kong security law seemingly dampened the

early exuberance apparent in Asia-Pac trade, even after SCMP sources suggested

that "Beijing's new national security law will be incorporated into Hong Kong's

legal system with built-in protections for offenders, who will not be sent

across the border to mainland China to face trial." Defensive flows accelerated

as the Hang Seng moved through yesterday's lows, with bears shifting focus to

the month-to-date low as the next technical support level for the index. The CSI

300 & Hang Seng underperformed their major regional counterparts, although there

wasn't much in the way of notable net outflow in either direction visible via

the Hong Kong-China stock connects, but the general worsening of Sino-U.S.

relations likely added further pressure. The caution evident in these indices

generally limited the remaining regional benchmarks and pulled e-minis off their

early highs, as the positive lead from Wall St. wore off. As a reminder, the S&P

500 managed to close above its 200-DMA and the psychological 3,000 level.

- Nikkei 225 +1.0%, Hang Seng -1.8%, CSI 300 -0.4%, ASX 200 +1.1%.

- S&P 500 futures -3, DJIA futures +76, NASDAQ 100 futures -57.