Mixed Trends, Nikkei 225 +6% For The Week

Regional equities are mixed as we approach the weekend. Japan markets are higher, albeit with more modest gains compared to recent sessions. Trends are mixed elsewhere. US equity futures are down, but up from session lows. Eminis are off 0.14% but remain above 4800, Nasdaq futures are down around 0.10%. The US/UK military strikes on Yemen (in response to Houthi attacks on Red Sea commercial shipping) has likely added some risk aversion at the margins.

• The Nikkei 225 is up around 1%, the index on track for its best week in nearly 2 years. The Topix is up a more modest 0.20% at this stage. Foreign investors bought local shares last week, and will have likely done so this week.
• China markets are down slightly at the break. The CSI 300 off 0.17%. Inflation data and trade figures for Dec were slightly better than expected but are unlikely to shift the macro needle. At this stage, the consensus looks for a 10bps cut in 1yr MLF on Monday.
• The HSI is close to flat at the break.
• South Korea shares continue to underperform, the Kospi off 0.70% at this stage. Offshore investors are net sellers today, -$254mn in outflows, after strong inflows yesterday likely associated with the Lee family selling Samsung shares.
• Taiwan's Taiex is close to flat, as Saturday's election comes into focus.
• In SEA, most markets are up outside of Singapore, although gains are modest at this stage.