Headline Hong Kong & China Indices Back Close To Late 2023 Lows

Regional equities are mostly lower, led by weakness in HK and China markets. This comes despite a modestly positive cash lead from US markets in Friday trade. US equity futures opened higher today but haven't been able to sustain those gains. Eminis last in the red at 4732, likewise for Nasdaq futures, down nearly 0.10%.

• There hasn't been a clear macro catalyst for further weakness in HK and China stocks. Tech related plays have definitely underperformed. The HS TECH sub index off 3.15% at the break, the headline HSI down just over 2%.
• Headlines crossed of Evergrande's NEV unit being suspended from trading, with later headlines crossing that an official in this unit has been detained on suspicion of criminal activity. The China Golden Dragon Index was also weaker, off 1.8% in Friday trade.
• The CSI 300 is off nearly 0.90% at the break and back sub 3300. Both this index and the HSI are close to late 2023 cyclical lows.
• Elsewhere Japan markets are out today, while the Kospi has dipped 0.35%. The Taiex has outperformed, up 0.40%, aided by better a SOX performance in US trade on Friday.
• In SEA, trends are mixed. Thailand stocks are off 0.90%. Earlier headlines crossed the PM calling for a potential rate cut amidst a lower inflation backdrop. This has driven baht underperformance.