Asian stocks followed their European.........>

STOCKS: Asian stocks followed their European counterparts lower, as risk

sentiment was dented on the day that Hong Kong returned from the LNY holiday.

- Japanese stocks unwound some of yesterday's gains with Monday's biggest

gainers; exporters, banks & electronics makers leading the unwind as the Nikkei

225 traded -0.9%. Mizuho also cautioned that the MSCI may change rules

surrounding Japan which could lead to $5bln worth of outflows, although SMBC

Nikko suggested that "the market is inclined to have some profit-taking, co.'s

continue to be at risk of FX losses, giving headwinds to export-related shares."

- The Hang Seng bucked the trend as it went in to lunch break 0.1% higher

following the long holiday weekend, and in front of earnings from the financial

heavyweight HSBC. The consumer discretionary sector led the way, while

financials & consumer staples lagged.

- The ASX 200 traded 0.1% lower as the metals sector fell afoul of tariff

rumblings surrounding the metals space for a 2nd consecutive session.

- US index futures also edged lower, with the Dow down over 50 points and the

S&P500 around 5 points lower.