Hang Seng 20% Off January Highs

Regional equities are by and large weaker across the board. Focus has again been on China/Hong Kong shares. We opened up weaker and losses accelerated post the China PMI data print misses. US futures have also been dragged lower. Eminis were last down over -0.20%, tracking near 4205. Nasdaq futures have shed earlier gains, last -0.15%.

• We didn't see much of market reaction after the US debt ceiling bill cleared its first major hurdle. It was passed in the Republican controlled House Rules Committe by 7-6 votes. This clears the way for the bill to be voted on by the full house on Wednesday.
• In Hong Kong the HSI is off by over 2% to the break. This puts the index down over 20% from Jan highs. The tech sub index is 2.47% weaker.
• The CSI 300 is down over 1% and back sub 3800 at the break. We did see a decent rebound post the break yesterday and into close. Data momentum continues to soften though, with PMIs surprising again on the downside for May, with detail also soft.
• The Topix has faltered, down over 1%, while the Nikkei 225 is off by 1.5% at this stage, with weaker tech related plays weighing. The Kospi and Taiex are also modestly lower.
• SEA stocks are mostly weaker, although losses are under 1% this stage. The ASX 200 is down by 1%, with lower commodity prices weighing on the materials sector.