[MARKET ANALYSIS] Asia-Pac stocks are mixed but with the region mostly positive following the record highs on Wall St

APAC Stocks: Mixed/Mostly Positive

• Asia-Pac stocks trade somewhat mixed but with the region mostly positive following the fresh record levels on Wall St.

ASX 200: +0.3%

• Marginally gained amid strength in tech and defensives, while participants also digested monthly inflation data, which printed softer-than-expected but remained sticky.

Nikkei 225: %

• Japanese stocks lagged amid frictions with China after the latter imposed export controls on dual-use items to Japan.

Hang Seng & Shanghai Comp: Hang Seng -0.9% / Shanghai Comp +0.1%

• Chinese markets diverged with the Hong Kong benchmark pressured by losses in energy names and tech stocks following a decline in oil prices, and with platform names pressured by China announcing management measures for online platforms. Conversely, the mainland is kept afloat but with upside limited following a substantial net liquidity drain of around CNY 500bln in the PBoC's open market operations.

US Equity Futures: Rangebound

• Lack of direction with index futures pausing following their recent rally.

European Equity Futures +0.2%

• Indicate a positive cash market open with Euro Stoxx 50 futures up 0.2% after the cash market eked gains of 0.1% on Tuesday.

The mixed yet mostly positive performance of Asia-Pacific stocks reflects a cautious optimism following record highs on Wall Street, indicating investor sentiment is holding up despite some economic pressures. Notably, the softer-than-expected inflation data in Australia could support further monetary easing, while the friction between China and Japan and the PBoC's liquidity drain are key dynamics to monitor for potential market implications and sector performance.