Property Related Gains Fuel HK/China Market Gain, Mostly Positive Trends Elsewhere

Regional equities are mostly higher, with standout performances in terms of HK and China related equity markets. This follows Hong Kong markets returning from Friday's closure, while further property optimism is also buoying sentiment. US equity futures have been range bound, sitting a touch higher at this stage. US markets are today though for the Labor day holiday.

• HK and China markets rallied strongly at the open and maintained positive momentum into the break. The HSI is +2.55%, the CSI 300 +1.38%.
• News of easing housing restrictions in tier 1 cities like Beijing and Shanghai from late last week, coupled with anecdotal evidence of strong sales over the weekend has buoyed sentiment. This comes after down payments and mortgage rates were lowered last week.
• The Hang Seng Mainland Properties Index is up 9.13%, while the CSI 300 real estate index is up nearly 1%.
• Elsewhere, gains are evident, but major indices are under +1% at this stage. Japan stocks are higher, with the Topix +0.70% at this stage. The Taiex is +0.60%, the Kospi +0.40% (although the Kosdaq is modestly weaker).
• In SEA trends are more mixed. Thai stocks are close to flat, while modest gains are seen elsewhere.