Cautious Tone (ex China) Ahead Of Key Event Risks

Regional markets have been under pressure to start the week, although China markets have bucked the broader trend, tracking higher in the first part of trade. US futures are mostly lower, with eminis off -0.37%, Nasdaq futures -0.43% at this stage.

• Familiar themes are dominating sentiment, with fears over a stronger for longer US theme ahead of tomorrow's CPI print weighing. US-China relations are the other concern, as on-going balloon and other related air incidents risk raising tensions. Fresh US curbs on tech related exports to China is a potential action from the US side.
• The China Dragon Index fell sharply in Friday trade (-3.66%), while the HSI is off by around 0.4% so far today. The tech sub index was down over 2% in early trade, but has largely pared these losses.
• China mainland stocks are firmer though, +0.70% for the CSI 300 so far today. Tensions with the US haven't weighed materially, while property developer Vanke plans to raise 15bn yuan in a private placement, the biggest since regulators lifted restrictions on the sector last year.
• The Kospi and Taiex are both weaker, in line with tech weakness from Friday's session and further Nasdaq futures losses today. The Nikkei 225 is also off by 1% at this stage, even as JPY has been the weakest performer in the 10 space. The new BoJ Governor is expected to be presented to parliament tomorrow.
• Outside of Indonesian stocks, SEA bourses and Indian shares are tracking weaker so far today.