China/HK Weaker Further, South Korea Shares Continue To Unwind April Gains

Some of the major indices have continued to struggle today as similar themes from late last week impact sentiment. China and Hong Kong markets have weakened further, while there have been some pockets of strength in the region, gains have been modest for the most part. US futures opened weaker and have stayed negative through the Asia Pac session, last -0.30% weaker.

• The CSI 300 is off by a further 0.43% at this stage, leaving the index very close to its 200-day MA (4014.3, versus last levels of 4015.20). Weakness looks to be a carry over from last week, with the threat of further investment curbs from the US weighing, particularly in the tech space. Northbound stock connect flows are negative so far today, -1.54bn yuan. This comes after decent -7.62bn yuan in outflows from last Friday.
• The Golden Dragon Index ended last week on a softer footing, while the HSI is off by 0.63% in the first half of trading today, although the tech sub index is outperforming (+0.2%).
• South Korean shares are underperforming, down 0.83% for the Kospi as we continue to see some unwinding of recent outperformance. The Taiex is faring better, close to flat, despite a negative lead from the SOX on Friday.
• Japan shares are modestly higher, the Topix +0.18, while Australian shares are around flat.
• In SEA, Philippine shares have outperformed, up 0.88%, as markets return from Friday's holiday. Most other markets are in the red though.