Regional Markets Rally, Although Returning Japanese Markets Lag

Most regional markets are tracking higher at the start of the week. The exception is Japan, with local markets returning from a 3-day break and struggling for positive traction amid US bank jitters. US equity futures opened higher but couldn't sustain positive momentum, with the Eminis off by around 0.08% at this stage, last near 4147. Still, this isn't too far off Friday session highs (just above 4160).

• China shares are firmer across the board, with the CSI 300 +1.00%, the Shanghai Composite around +1.55%. Banks have outperformed after a number of lenders lowered deposit rates to boost margins. Insurers also maintained a positive tone. Some offset came from weaker property developer performance amid signs the housing recovery lost traction in April.
• Hong Kong shares are also higher, with the HSI +0.75% at this stage. Some positive spillover from Golden Dragon Index gains through Friday's US session is helping. Alibaba is also planning an IPO in 2024 for its logistics division.
• The Kospi (+0.74%) and Taiex (+0.60%) are both higher, following positive leads from US tech on Friday, as the risk on mood prevailed.
• Japan stocks have returned, with local markets retracing modestly. The Topix down by 0.20% at this stage. This mainly owes to underperformance in the banking segment (playing some catch up with global weakness while Japan markets were closed Wed-Fri last week).
• SEA markets are mostly positive, albeit with the Singapore Strait Times and Indonesia JCI lagging somewhat.