Mixed On Tuesday; Chinese Developers Gain On Asset Sales

Major Asia-Pac equity indices are mixed at writing, with Japanese and Hong Kong benchmarks giving up their early bids, while Chinese stocks have pushed higher amidst an uptick in optimism surrounding domestic economic stimulus in Q3.

• The Hang Seng deals 0.4% weaker, dragged lower by losses in tech and utilities. The property sub-index (+1.7%) was a notable bright spot, driven by a strong showing from China-based developers (Hang Seng Mainland Properties Index: +3.4%).
• The bid in the latter comes as several developers such as CIFI Holdings (+4.6%) and Guangzhou R&F Properties (+3.5%) have announced the disposal of assets, easing some worry re: a liquidity crunch in the sector, with the CSI300 Real Estate Index (+1.7%) firming as well.
• The broader CSI300 (+0.6%) bucked the broader trend of losses, with high-beta consumer staples equities leading the way higher following voiced support for stimulus in Q3 by NDRC officials on Monday. The ChiNext underperformed, dragged lower by heavyweight CATL (-3.5%) amidst news of a terminated JV arrangement.
• The ASX200 is little changed at writing, with little by way of a meaningful reaction observed in the index and its various sub-gauges after the RBA’s monetary policy decision.
• E-minis are off their early highs, sitting 0.4-0.6% firmer apiece at writing, operating a short distance from last week’s one-month lows.