HSI Volatility Dominates As Asian Markets Re-Open

Regional equity markets are mixed today. Hong Kong markets re-opened much higher (returning from yesterday's holiday), but quickly found selling interest. The HSI back close to flat. US futures are down a touch, but are away from worst levels. The market digesting late comments from the US session around the debt ceiling and developments in the banking space post J.P. Morgan's take over of First Republic.

• The HSI opened up strongly led by tech, but quickly ran into selling interest. Initial optimism rested with China spending/activity over the May day holiday period (which continues this week), with anecdotes of strong activity. We also had a decent beat on Q1 GDP for Hong Kong, but that failed to lift sentiment further.
• Fresh concerns in the property sector following a default from last Friday along with weaker earnings appeared to curb the rally. The HSI is back to around flat, the tech index is up off lows, but still more than 2% down from opening highs.
• Other markets which returned from yesterday's break have fared better. The Kospi is +0.65%, while the Taiex is +0.20%. Singapore and Malaysia markets are also higher, but away from opening highs.
• Indonesian stocks are bucking this trend, down over 1%. Construction company Waskita has fallen sharply after its CEO was detained by the Attorney General's office.
• The ASX 200 is around flat, while Japan stocks are trading slightly in the red, the Topix off by 0.20%.