Eminis At Simple 200-day MA, China Equity Weakness Continues

Asia Pac equities have been under pressure in the first part of Monday trade. All the major indices are lower, although note Hong Kong markets have been closed today for a public holiday, which has likely had some impact on broader liquidity. Higher US futures have probably provided some offset, but this hasn't been enough to turn markets back into positive territory. Eminis are +0.18%, last near 4256, which is close to the simple 200-day MA. Nasdaq futures are up by a similar amount.

• Risk appetite has improved modestly, as Israel is yet to invade Gaza, as hostage negotiations continue. This has seen oil prices move lower, but the USD and US Tsy yields have firmed.
• China equity weakness remains a focus point. The CSI 300 is off another 0.60% to the break. This puts the index sub 3500 and below November 2022 lows.
• The Taiex is off nearly 1%. Broader tech headwinds are weighing, while a reported probe by China into key Apple supplier Hon Hai (a subsidiary of Foxconn) is also likely impacting sentiment negatively.
• The Kospi is down as well, but a more modest 0.50%. Japan benchmark indices are off by a similar amount.
• In SEA, Indonesian markets are close to -1.2% lower, continuing their recent pull back (following last week's surprise rate hike). Malaysian stocks are faring better, sitting around flat at this stage.