Hong Kong Markets Negative Return, Japan Stocks Halt 10 Week Bull Run

Regional equities are weaker, with losses particularly prominent in HK and Japan markets. This has weighed on US equity futures, which have steadily edged down for much of the Asia Pac session. Eminis were last off nearly 0.50% and close to the 4400 region. Nasdaq futures are down by a similar amount.

• The return of Hong Kong markets, after yesterday's holiday, has seen fresh downside in major indices. The HSI is down close to 2% at the break, the China Enterprise Index slightly weaker at -2.06%.
• Some catch up, with the China Dragon Index generally under pressure this week in US trade, coupled with hawkish central surprises from Thursday, appear headwinds. Fresh stimulus calls continue as well, although China markets don't return until Monday.
• Japan markets have seen notable losses as well, the Nikkei 225 off nearly 1.9% at this stage. Losses have been fairly broad based. If we don't see a sharp turnaround before the close, it will be the first weekly loss for the Nikkei since the start of April.
• The Kospi is down close to 1%, while the ASX 200 continues its recent correction, off 1.30%.
• In SEA markets are mostly weaker, although losses are lower than NEA at this stage.