China Shares Recoup Early Losses, But Generally Weaker Trends Elsewhere

Regional equities are once again mixed. China and HK markets started off weaker, but China onshore sentiment rebounded ahead of the lunch break. US equity futures are lower, with Eminis off by ~0.20%, last near 4529, while Nasdaq futures are down ~0.30% at this stage. These moves have helped offset some of the positive lead from the Monday US session.

• China's CSI 300 is a touch firmer at the lunch time break. We were -0.70% weaker at one stage. In index terms support has been evident around the 3960 level so far in August (latest levels ~3993). Health care stocks have recovered some ground, but the real estate sub index is off a further 0.55%, after dipping -3.36% yesterday. Funding/liquidity concerns at developer Country Garden remain a concern. July trade figures also point to weaker economic conditions for China.
• The HSI is off 1.37% at the break, although we are away from session lows. The HS China Enterprises Index is down 1.65%. The HSI has unwound the late July bounce, but remains comfortably above earlier July lows.
• Japan stocks are edging higher, but without strong conviction. The Topix up ~0.30%, likewise for the Nikkei 225. Yen is tracking weaker, down 0.60% against the USD, but earlier data showed weaker than expected wages and household spending data.
• The Kospi couldn't hold early positive momentum, the index sitting sub 2600, last down -0.10%. The Taiex is off by 0.70% at this stage, despite a bounce in the SOX in US trade on Monday.
• SEA markets are mixed, but mostly lower. Malaysia shares the main outperformers +0.40%.