Regional Equities Tracking Lower, Higher USD/Yields Weigh

Regional equities are mostly tracking lower in the first part of Tuesday trade. Weakness has been fairly broad based, although there are some pockets of strength in South East Asia. US equity futures have ticked lower, but losses are modest at this stage. Eminis last near 4515, -0.15%, while Nasdaq futures are near 15502, off by around -0.10%.

• US cash Tsys trading has resumed post Monday's holiday, with yields continuing to rise, in a continuation of the post payrolls theme from Friday US trade. The 10yr is +3bps, near 4.21%. This has aided the USD and weighed on regional risk appetite, which has contributed to equity market losses.
• China stocks have unwound some of yesterday's rise. The CSI 300 sits 0.58% lower at the break. A weaker than expected Caixin services PMI print (51.8 versus 53.5 forecast and 54.1 prior) has weighed on the rebound theme.
• Country Garden has reportedly repaid coupons on two dollar bonds, within the allotted grace period. The HSI is down 1.51% at the break though, with the mainland properties index off by 2.73%, following yesterday's 8.21% rally.
• Japan stocks are modestly lower, the Topix off by near 0.40% at this stage, with Toyota losses weighing on sentiment. South Korean and Taiwan shares are down a touch, but largely tracking recent ranges.
• In SEA, most bourses are down modestly. Thai shares are trying to track higher after 3 sessions of losses, but the index is close to 1550 at this stage. Philippine shares have seen some support sub 6200, while August inflation data was noticeably stronger than expected due to higher rice prices.