China LPR Cuts Fail To Lift Broader Sentiment

Most regional markets are tracking lower in the first part of Tuesday trade. China LPR cuts have failed to generate positive sentiment, although they had been well anticipated by the market. EU equities were weaker on Monday trade, while US futures are in the red by -0.20-0.25% at this stage. Eminis were last near 4443. These trends have also weighed on regional sentiment.

• Mainland bourses are close to flat at the break, the CSI 300 near 3931 in index terms. The real estate sub index is down 1.22%, now off around 3.5% since last Thursday. The 10bps cut to the 5yr LPR was less than the consensus expected (-15bps forecast), although it was a close call.
• HK shares are struggling the main HSI off by 1.53% at the break. The tech sub index off by 2.56% at this stage.
• Japan stocks are weaker, with the Nikkei 225 down around 0.40% in latest dealings. The electric appliances sector is weighing, with positive sentiment from Warren Buffett raising allocations to 5 trading houses, not enough to offset broader headwinds.
• South Korea and Taiwan stocks are also lower, but falls are fairly modest at this stage.
• Australian shares are higher, the ASX 200 last up 0.90%, with banks and mining leading the gains. Lower yields, which has weighed on the AUD post the RBA minutes has aided sentiment.
• In SEA, most markets are weaker, with Thai stocks off by nearly 1%.