HK Markets Recoup Earlier Losses As Property Developer Sentiment Improves

Regional equity market trends are mixed again in the first part of trading. This comes despite positive leads from US/EU markets in Monday trade. US futures are up from earlier lows, but haven't breached Monday session highs. Eminis (Dec contract) were last near 4535, after an earlier low just under 4530. Nasdaq futures track at 15662.

• The HSI has erased earlier losses to sit around flat at the break. Property sector sentiment improved as the session progressed as Country Garden reportedly received approval to extend repayment on six yuan bonds by 3 years. Real estate developers were down 2%, but now sit close to 3% higher.
• Optimism around EV car demand is also spurring gains after a positive outlook was posted by analysts at Citic Securities. The HS China Enterprise index has largely unwound earlier losses.
• At the break, mainland shares sit modestly higher. The CSI 300 +0.10% to 3771 in index terms.
• Japan shares are firmer, the Topix +0.60% at this stage. Toyota has been the strongest performer, while local bank stocks have added modestly to yesterday's +5% gain. Japan yields have ticked modestly higher, although a 5-yr debt auction went well.
• Elsewhere trends are mixed. The Kospi is off by 0.55%, while the Taiex is outperforming, +0.85%. There was a better tone to some tech related shares in US trade on Monday, but it wasn't led by semiconductors (with the SOX only modestly higher).
• In SEA Thai stocks are higher by 0.50%, but modest losses are being seen elsewhere.