Mixed Start To Busy Central Bank Week

Regional equities have gotten off to a mixed start this week. Japan stocks are modestly higher, while HK and mainland China are down slightly. SEA is mixed. US futures are positive but down from session highs. Eminis last around 4352.00, against a high of 4357.25. Nasdaq futures are slightly outperforming, last +0.15% at 14757.50, but also down from session highs.

• The Nikkei 225 is +0.25% at this stage, off from earlier highs. PPI data showed waning upstream price measures, while an ex-BoJ Governor didn't expect policy shifts from the central bank at the coming meeting this Friday.
• The HSI is down 0.57% at the break, while China stocks are slightly weaker. The CSI 300 remains above 3800 at this stage. Weakness in the HSI has been led by tech and banking sector names.
• There speculation the 1 yr MLF rate will be cut this Thursday, although recent commentary from the China authorities doesn't suggest we will see aggressive policy stimulus.
• The Kospi is tracking 0.50% lower, unwinding some of the recent outperformance, last around 2627 in index terms. The Taiex is tracking better, last around 0.50% firmer.
• In SEA Malaysia shares are the standout +1% higher. The government will extend existing subsidies and price controls for poultry and eggs beyond the original June 30 deadline. Also Malaysia named Shaik Rasheed Abdul Ghaffour as its new central bank governor, Malaysia's king approved Rasheed as the governor from July 1 for a period of 5 years.