[MARKET ANALYSIS] Asia-Pac equities entirely in the red, weighed on by the tech sector

• Asia-Pac stocks trade entirely in the red as the tech sector leads declines.
• ASX 200 continues to fall away from its 2026 peak of 8915, despite positivity seen in the metals space as BHP (BHP AT) upgraded its FY26 copper production guidance.
• Nikkei 225 nears 53,000, falling from its ATH of 54,522, as traders assess the policies put forward by the LDP and Centrist Reform Alliance going into the February 8th elections.
• KOSPI is set to snap its 5-day winning streak, falling from its ATH at 4924, as the tech sector weighs on sentiment. Samsung (005930 KS) and SK Hynix (000660 KS) lead losses, with shares falling as much as 3% each.
• Hang Seng and Shanghai Comp. lead the pack with only modest losses, and little follow-through from the PBoC unsurprisingly holding LPRs steady. Global equities continue to price in the re-escalation of tariffs between the US and EU.
• US equity futures hold onto Monday’s equity futures losses (ES -1%, NQ -1.1%).
• European equity futures are indicative of a modestly weaker open with the Euro Stoxx 50 future down 0.2% after cash closed -1.8% on Monday.

Asia-Pacific equities are fully in the red, primarily driven by declines in the tech sector, which are weighing on overall market sentiment. Despite gains in the metals space, concerns over upcoming elections in Japan and global tariff re-escalation between the US and EU are amplifying risk aversion. This bearish sentiment is reflected in US and European equity futures, indicating potential further weakness ahead.