HK Shares Lower On Renewed China Property Woes, US Futures Tracking Higher

Regional Asia Pacific equity markets are mixed to start the week. Downside has been evident in terms of Hong Kong and China shares, amid renewed China property woes. This unwinds some of Friday's positive momentum in these markets. Some positive trends are evident elsewhere, most notably for Japan stocks. US equity futures are tracking higher at this stage, with Eminis +0.27% to 4373. With lows from late last week, sub 4360 intact. Nasdaq futures are slightly outperforming, +0.35%.

• A tentative agreement to end the Hollywood strike may be aiding US equity sentiment, although the auto strike continues, while US yields have recouped some of Friday's losses.
• Hong Kong equities opened flat, but this quickly gave way to renewed weakness. The HSI down 1.24%. A Bloomberg property sector gauge is down 6%, the most since Dec last year. Among the headwinds have been property developer Evergrande scraping a creditors meeting and revisiting its restructuring plan. China Oceanwide, which also has operations in real estate, will reportedly be wound up.
• China's CSI 300 is also lower, down -0.51% at the break. The real estate sub index down 2.13%. It is back close to July lows in index terms.
• Japan stocks are outperforming, the Nikkei +0.80% at this stage. The positive US futures backdrop little helping. The Taiex is +0.80%, likely helped by a better SOX trend from Friday US trade.
• South Korean shares are weaker though, the Kospi off by 0.55% at this stage.
• The ASX 200 is down slightly, while Malaysia and Thailand shares are weaker in SEA. Indonesia is around flat.