Early Positive Impetus Not Sustained For China Markets

Early gains in China/HK equities have not been sustained as a more cautious tone has given way as the session progressed. US futures are generally lower (Eminis off by 0.40%, Nasdaq futures down by 0.34% at this stage), with US fixed income markets re-opening and yields mostly pressing higher (+2.9-4.7bps firmer across the curve), with some spill over from leads in AU/NZ bond markets.

• The CSI 300 is around flat currently, unwinding earlier gains, while the Shanghai index is +0.10%. The property sub-index is +0.44%, although away from earlier highs. Market sentiment was lifted by reports from late yesterday that the country is launching a private equity pilot program for the property sector. Weakness in consumer staples stocks has also provided an offset.
• The HSI is down around 1% at this stage, with tech sub index off by 2.50%. HSBC reported lower than expected net income for the full year.
• The Kospi and Taiex are close to flat, with range bound markets in play. Likewise for the Nikkei 225.
• NZ stocks are down a further 0.90%. This followed comments by the NZ Treasury around higher for longer interest rates post Cyclone Gabrielle. The RBNZ decision is due tomorrow.