Most Regional Markets Tracking Lower, Japan Outperforming

Regional equity markets are mixed today, with Japan the main positive story, but a lot of the other major indices have struggled to maintain positive momentum. China and HK bourses sit lower. US futures has mostly been firmer, with eminis last +0.20% and near 4152. Nasdaq futures are slightly higher at +0.30%.

• The HSI was higher at the open but couldn't sustain these gains. We were last -0.13% to 19718, after getting as high as 19850 not long after the open. Tech is outperforming, with the sub-index +1.20%. We saw a strong Thursday rally for the Golden Dragon Index in US trade, after senior US/China officials met in Vienna Wed/Thurs. E commerce company JD.com is also tracking higher after surging Q1 earnings.
• Mainland China shares are also down, the CSI 300 off by nearly -0.60% at this stage. Weaker data outcomes this week have taken the shine off the recovery theme.
• Japan stocks are doing better, the Topix +0.5%, with the electric appliances sector the main driver of gains.
• The Kospi is down 0.35%, while the Taiex is close to flat, in line with some tech related weakness during US trade on Thursday.
• Thai shares are down 1.00% ahead of Sunday's election. We remain comfortably above early May lows though near 1500. Philippines stocks are also weaker, down nearly 1%.