China Outperforms, NZ Slumps

Regional equities are mixed to start the week. China bourses are the main story from a positive standpoint, with most other major indices close to flat. NZ stocks were a notable underperformer, down over 2%, as the country continues to assess the impact of Cyclone Gabrielle. US futures started the session off weaker, but are now back close to flat. The President's Day holiday in US markets today could also be impacting liquidity.

• The CSI is up over 1.30% at this stage. Early reports pointed to better higher frequency activity indicators in Feb, such as rail traffic. Goldman Sachs also put out a bullish China stock note. A Reuters report that banks should curtail lending, after record lending in Jan, didn't appear to impact market sentiment in a negative way.
• The China moves have seen positive spill over to Hong Kong, where the HSI is up around 0.50% at this stage.
• The Kospi was firmer in early trade, with little impact from fresh missile tests by North Korea. However, sentiment has softened this afternoon, the index back to -0.1% for the session. Japan's Nikkei 225 is around flat at this stage, while Taiex is +0.45%.
• NZ stocks fell by more than 2%. Cyclone Gabrielle is expected to have meaningful economic headwinds in the near term.
• In SEA, only Thai stocks are firmer at this stage.