Japan Still Outperforming, While China Shares Struggle

Most regional equity markets are tracking lower, although Japan markets remain a standout performer. The HSI is positive, but only modestly higher, while China mainland shares remain under pressure. US equity futures have mostly been in the red, but have recovered this afternoon from earlier lows. Eminis last near 4138.5, almost unchanged for the session.

• China shares continue to track lower, the CSI down 0.24% at this stage, while the Shanghai Composite Index is down nearly 1%. The CSI 300 is very close to multi-month lows. The on-hold MLF decision may have disappointed some in the market, while China's clamp down on data security may also be weighing on the outlook.
• The HSI is a touch higher, last +0.14%, while the Tech sub-index is down slightly. We did see a pull back in the China Dragon index during Friday trade in the US.
• Japan stocks are showing more positive momentum, the Topix around +0.85% firmer at this stage. Weaker yen levels (with JPY back to 136.15/20) are helping at the margin, while positive carry over from corporate earnings results is the other positive.
• The Kospi and Taeix are both down modestly, while the ASX isn't too far away from flat.
• The SET, in Thailand, couldn't sustain early positive momentum post Sunday's election results, with the opposition parties outperforming those aligned with the military. The SET was last -0.80%.