Hong Kong, China Markets Unwind Some Late 2023 Gains

Regional equities are mostly lower in the first trading day for 2024. This follows a negative finish for US markets in Friday trade last week (albeit after a strong rally prior). US futures in trade today have tracked tight ranges with a slight downside bias. Eminis were last around 4820 (close to flat), while Nasdaq futures were down 0.10%.

• On the downside, the main focus today has been in weakness in Hong Kong and China markets. At the break, the HSI is off 1.45%, while the CSI 300 is down just over 1%.
• This unwinds some of the strong gains seen towards the end of 2023. It also comes despite a stronger than expected Caixin PMI print today, although on Sunday the official manufacturing PMI slipped further into contractionary territory.
• Japan markets remain closed until Thursday.
• South Korea's Kospi is close to flat, while the Kosdaq has risen by 1%. Earlier comments from President Yoon stated that South Korea's stock market is undervalued, while the authorities will also reportedly seek to abolish financial investment income tax. Taiwan's Taiex is off 0.65% at this stage.
• In SEA, Philippines and Thailand markets are both up around 0.7%. Singapore's Strait Times is down 0.30%, despite a firm Q4 GDP beat.