China Markets Pressured By Regulation Chatter

Markets in the Asia-Pac region are mixed, despite a positive lead from the US where markets hit another record high. In Japan markets are trading with small gains, data showed PPI rise above estimates at 5.6% Y/Y and 1.1% M/M. A panel of experts advising the Health Ministry warned that strain on the healthcare system in Tokyo and other localities is reaching a critical phase while Fitch affirmed Japan at A with a negative outlook. Markets in China are down, the CSI 300 shedding almost 1%; there are fears of further regulation with a statement from the State Council yesterday saying it would actively work on legislation in areas including national security, technological innovation as well as anti-monopoly to improve the legal framework and help govern the country. The CBIRC has also laid out new guidelines for cracked down on improper marketing and pricing practices in insurance technology platforms. Most EM bourses in minor positive territory amid generally supportive risk sentiment. In the US futures are mixed, e-mini Nasdaq the laggard hovering just beneath neutral while e-mini Dow and S&P slightly higher. Markets look ahead to UK GDP and US PPI data later today.