Japan Banks Down Sharply, HK & China Markets Steady

Regional equity markets are mixed, although losses outweigh positive markets at this stage. Japan markets have been notable underperformers, with local bank shares down sharply. US futures sit a touch lower at this stage, although have traded tight ranges overall. Eminis were last near 4393 (-0.08%), while Nasdaq futures sit 0.11% weaker.

• Japan's Topix is off around 1.2% at this stage. The bank sub index dipped 5.5% at one stage, with limited prospects of a BoJ policy shift in the near term weighing on sentiment. The index is back to early September levels. The Nikkei 225 is off around 0.35% at this stage. Earlier Suzuki reported better than expected earning results.
• In Hong Kong and China markets, we are seeing a slight outperformance trend, although at the break the HSI and CSI 300 are only modestly in positive territory.
• Prospects for potentially improved US-China ties (ahead of Xi Jinping's Visit to the US next week) is cited as a potential positive, while comments from PBoC Governor Pan suggest support for property developers and indebted local government areas. This follows a meeting between regulators and property developers on Tuesday (see this BBG link). Note the CSI 300 real estate index is up 1.59% at the break.
• The ASX 200 is up modestly despite a softer commodity price backdrop in the energy space. Local bank stocks were higher.
• In SEA most markets are lows, with Singapore's STI down 1.4%.