Japan Outperforms, Weaker Data Weighs On China/HK

Japan markets are the clear outperformers in Asia Pac trade so far in Wednesday trade. Mixed trends are evident elsewhere. US futures are down but away from session lows. Eminis were last near 4206, off close to 0.15%. Earlier dips sub 4200 were supported. Nasdaq futures are also weaker (last -0.10%), but likewise away from earlier lows.

• Some late earnings disappointment from the NY session on Tuesday has weighed on US futures, but overall ranges have been tight. Proximity to the upcoming Fed meeting later may be leaving participants in wait and see mode.
• Japan's Topix is up around 2% at this stage, putting the index back above 2300 (levels last seen in the first half of October). The electrical appliances sector and transportation have been the strongest contributors to the rise.
• A weaker yen/dovish BoJ backdrop will be aiding sentiment for some these sectors. The yen is slightly stronger today though as the authorities raised their verbal rhetoric around FX weakness.
• Hong Kong and China markets sit close to flat at the break. This is away from session lows, which came after a weaker than expected Caixin manufacturing PMI print (49.5). The CSI 300 is near 3574.
• South Korea's Kospi is nearly 1% higher, while the Taiex is +0.30% firmer.
• In SEA, Indonesian markets continued their recent volatility, the JCI off 1% so far today. Thailand stocks are also weaker, down 0.40%.