[MARKET ANALYSIS] Asia-Pac stocks trade mixed after the early sell-off gradually stabilised

APAC Stocks: Mixed

• Asia-Pac stocks are mostly lower after the global market rout rolled over into the region following the continued tech woes stateside and weak US labour market data. Nonetheless, most of the regional benchmark indices are well off their worst levels, as the early selling across risk assets gradually stabilised.

ASX 200: -1.9%

• Underperforms with the index dragged lower by heavy tech losses, and with sentiment also not helped by M&A related disappointment after the proposed Rio Tinto-Glencore merger fell through, while there were also comments from RBA Governor Bullock, who noted that the RBA board is not happy with inflation and the prospects of getting it down.

Nikkei 225: +0.6%

• Initially declined amid the broad risk-off mood and disappointing Household Spending data, but then recovered as participants look to the snap election on Sunday, where the ruling bloc is widely anticipated to achieve a landslide victory.

Hang Seng & Shanghai Comp: Hang Seng -1.2% / Shanghai Comp +0.2%

• Chinese markets are mixed amid a lack of fresh pertinent catalysts and with the mainland clawing back all of its early losses following another two-pronged liquidity operation by the PBoC utilising both 7-day and 14-day reverse repos.

US Equity Futures: Lower

• US equity futures are lower but off worse levels with early headwinds seen after Amazon shares dropped nearly 10% post-earnings.

European Equity Futures -0.1%

• Indicate a mildly lower cash market open with Euro Stoxx 50 futures down 0.1% after the cash market closed with losses of 0.8% on Thursday.

The mixed performance of Asia-Pacific stocks stems from a prior global market sell-off influenced by continuing tech sector struggles and disappointing US labor market data. Despite initial weakness, some indices are stabilizing, indicating potential for recovery as factors like central bank liquidity operations and upcoming political events in Japan are being factored into market sentiment.