Broad Based Gains (Ex Japan), China Markets Lagging

Asia Pac equities are mostly higher, although Japan weakness is a notable exception, while China markets have generally lagged firmer gains elsewhere. US futures have tracked higher, posting solid further gains. We sit down a touch below session highs, with Eminis last near 4779, +0.38%, while Nasdaq futures are around 0.54% higher.

• A further pull back in US yields (rough -3-7bps lower across the curve) has weighed on the USD and boosted broader risk appetite, aiding equity markets in the region, as the market focuses in on potential Fed cuts next year.
• Japan markets are clear outliers though. The Topix off 1.65% at this stage, the Nikkei 225 down nearly 1%. Export names have struggled amidst a firmer yen backdrop. USD/JPY falling sub 141.00 at one stage before stabilizing.
• China markets have also struggled to post strong gains. At the break the CSI 300 is up 0.25%, but still comfortably sub 3400 in index terms. Earlier gains were as much as 0.9%. An ex Development Bank Vice President was arrested on bribery charges (BBG). Yesterday's weaker than expected aggregate financing data may be another headwind.
• Hong Kong markets are faring better, the HSI up 1.1% at the break.
• The Kospi has rallied 1.3%, while the Taiex is up 0.8%. The ASX 200 is up over 1.5%.
• In SEA, the pick of the markets is the Philippines, up over 2%. Indonesia and Thailand markets have also post +1% gains.