Further Property Stimulus Hopes Aid China Developers, But Not Aggregate Indices

Regional equities have been mixed, despite a modestly negative lead from US/EU markets in Tuesday trade. HK and China stocks are down in terms of aggregate indices, despite hopes of more property stimulus. Japan shares have bucked the weaker trend at this stage. US equity futures are down a touch. Eminis last near 4498, off 0.10%, Nasdaq futures were just under 15504, down -0.20%.

• China property developers have surged. The Hang Seng Mainland Properties Index has rebounded 3%, while the CSI 300 real estate sub index is actually down slightly, off by 0.31%. Earlier onshore media reported that policies restricting house purchases should be scrapped. Easier restrictions should not just be for the tier-one cities. (See this link for more details).
• Still, these moves couldn't drag the HSI aggregate index higher. This index sits down 0.82% at the break. Softness in terms of the earnings backdrop was a factor citied as weighing on overall HSI trends.
• In China, the headline CSI 300 is off by 0.65% at the break, the index back sub the 3800 level.
• Japan's Topix is +0.70% higher, with Toyota gains helping to drive broader sentiment. A slightly stronger yen, fueled by increased intervention threats from the authorities, hasn't impacted sentiment.
• The ASX 200 sits lower, last down 0.80%. Weakness in materials and financials have offset gains in energy stocks.
• in SEA, market trends are fairly muted. Thailand and Malaysia stocks are tracking modestly higher at this stage, but the Philippines are weaker.