China Re-Opening Not As Positive As Hoped

Asia Pac equities are a mixed bag, with the return of China markets not proving to be as supportive as was hoped. The CSI 300 opened up above 2%, but is now back to +1.15%. Hong Kong and South Korea stocks are down noticeably. A generally negative tone to US equity futures, -0.20%/-0.34% across the major indices, hasn't helped either.

• Despite economic optimism around the China outlook, with strong anecdotes positive post the LNY break (in terms of travel and leisure spending), housing remains a source of weakness. Sales were down over the LNY break, while the Shanghai Property sub index is down 0.60% at this stage (the main index is +0.72%).
• The HSI is off by 1.62% so far, with the tech sector down 2.73%. Curbs on technology exports to China may be a factor, after Japan and the Netherlands agreed to join the US, although this was likely known on Friday.
• The Kospi is off by 1.30%, with Samsung profit results due tomorrow. Offshore investors has sold -$40.3mn so far in the session. In contrast, the Taiex has rallied by 3.2%, largely playing catch up as the markets return from the LNY break.
• Indian shares opened sharply lower, but have recovered back to flat. Fallout from the Adani saga remains a focus point.