Ex-Dividend Day/Oil Surge Hits Japan Stocks, China Property Concerns Remain

Japan stocks are noticeably weaker in Thursday trade, the major indices off nearly 2%. A number of markets are shut including South Korea and Indonesia. This is also China's last trading day ahead of the extended Golden Week break. US equity futures were higher in early trade, but couldn't sustain these levels. Eminis sit down slightly, last at 4309, after getting to 4326.50 earlier. We are above Wednesday intra-day lows sub 4280 though.

• Japan stocks are noticeably weaker. The Nikkei 225 off around 2% at this stage. The Topix down ~1.90%. The continued climb higher in oil prices have weighed from a broader macro standpoint. The local 20yr yield hit fresh highs back to 2014, while the yen also strengthened marginally.
• Also note that the Topix was weighed by over 1000 stocks going ex-dividend. Local analysts also indicated that a possible portfolio adjustment from the GPIF may be weighing as well.
• At the break the HSI is down a little 1%. Shares of struggling property conglomerate Evergrande have been suspended, which hasn't helped sentiment. While Country Garden dollar bond holders are reportedly yet to receive coupon payments which were due on Wednesday.
• In China, the CSI 300 is off 0.28% at the break. The other major indices slightly higher. Note this is the final trading session for China markets until we return from the Golden Week break on Oct 9.
• In Australia, the ASX 200 is off 0.40%. In SEA Thailand and Philippine stock indices are modestly higher.