China Financials +13% From Recent Lows, Little Positive Spillover Though

Regional equities are a mixed bag today, following an indifferent lead from US/EU markets on Monday. China shares are higher, once again led by the financial sector. Japan stocks are also doing well. Sentiment is more mixed elsewhere though. US equities have been in negative territory for much of the session, but only very modestly.

• The CSI is tracking close to +0.50% higher. Financials once again leading the way. This sub-index is now up ~13% from late April lows. Headlines from the HKMA Chief Executive around expanding wealth connect products has likely helped, as has plans announced around an overhaul of real estate brokerage fees. More broadly, prospects of a more supportive funding backdrop, coupled with economic and earnings optimism from onshore investors for Q2 is aiding sentiment. Import growth was weaker than expected today, taking some of the gloss off the rally.
• The HSI is still weaker though off by 0.53% at this stage, showing limited positive spillover from China onshore gains.
• Japan's Topix index is up close to 1.2%, led by the electronics sector. Toyota has also gained.
• The Kospi is down -0.15% at this stage, while the Taiex is close to flat. The ASX 200 has also slipped, down -0.23%.
• In SEA trends are mixed. Thai stocks continue to rally, +0.40% after yesterday's strong gains around election optimism.