Asia Pac Markets Firm, US Equity Futures Recoup Early Losses

Equity sentiment is mostly positive in Asia Pac markets in Thursday trade to date. Sentiment has been aided by a further modest pull back in US yields (the 10yr yield is down ~2bps to 4.71%). US equity futures have recouped earlier losses as well, although are only marginally in positive territory. Eminis were last back near 4300, up from earlier lows at 4286. Wednesday highs just above 4304 remain intact for now. Nasdaq futures have followed a similar trajectory.

• Japan stocks have rebounded, the Topix +1.70%, the Nikkei 225 up 1.45%. Bellwether names in the transport and banking sector have led the rebound. Offshore investors halted sales of local shares last week. Japan PM told unions that he will make stronger wage gains sustainable, per news wire reports (see this BBG link).
• Hong Kong markets are also firmer, the HSI tracking around 0.80% higher at this stage. China Property Developer Sunac won approval for a debt restructuring plan, which has likely aided sentiment.
• Tech sensitive plays are higher, following positive leads in Wednesday US trade. The Taiex up 1.1%, the Kospi +0.80%.
• The ASX 200 has rebounded 0.65%, but is lagging other major indices. A softer commodity price backdrop likely weighing at the margins.
• In SEA most markets are higher, although Thailand and Philippine stocks are down. The stronger than expected Philippines CPI data a likely headwind.