Asia Pac Trends Mixed, Focus Remains On US Regional Banks

Asia Pac equities have been mixed. On the plus side has been Hong Kong shares, the HSI up around 1% at this stage. China shares have been mixed on re-opening from the May day break. US futures opened sharply lower on renewed regional banking concerns, with PacWest down as much as 60% in after hours trading on reports the company was considering its strategic options, including a sale. A White House report on the economic consequences of a default also weighed. US futures are back in positive territory now though, last near 4115 for Eminis (+0.20%), against a low of 4075.50.

• Regional US bank stocks are likely to remain in focus. PacWest headlines have crossed this afternoon, with the bank stating it has not experienced out of the ordinary deposit flows and that its planned sale remains on track.
• The HSI has been buoyed by comments from the HKME Chief Executive that US rate hikes would not affect financial stability in HK. Bank stocks have helped the main index push higher so far today.
• China stocks are more mixed in their first trading session since last Friday, the CSI 300 down 0.12%, while the Shanghai Composite is in positive territory (+0.55%). The Caixin manufacturing PMI came in below expectations at 49.5 (50.0 was forecast).
• The ASX200 is down slightly, with weaker bank stocks weighing early, but better trends in the resource sector have aided sentiment as the session progressed.
• In SEA most markets are higher, albeit with Malaysia lagging. Gains elsewhere have been under 0.50% for the most part.