Renewed China Property Woes Weighs On Broader Sentiment

Hong Kong markets have returned today and lost ground (HSI off by more than 2%). Japan markets are faring better on their return, but are only modestly higher in terms of the Topix. Trends are mixed elsewhere. US equity futures sit modestly in the red at this stage. Emini last just under 4550, -0.10% weaker, while Nasdaq futures were down 0.17%.

• The HSI is off by 2.17% at the break. Some catch up to the softer tone in mainland China shares yesterday post weaker data is in play, while renewed property market concerns is another headwind.
• Property developers have weighed on the HSI, amid a warning from Dalian Wanda Group on a funding short fall (it has a $400mn bond due on July 23). Elsewhere, China's Evergrande reported larges losses for the past two years, while a creditor is seeking bankruptcy for Evergrande's real estate Xian unit.
• The mainland CSI 300 is off 0.30% at the break, despite a rebound in consumer discretionary stocks as the authorities pledge to aid the consumption recovery.
• Elsewhere both the Kospi and Taiex are down despite positive leads from US tech related indices in Monday trade. Losses are under 0.50% at this stage.
• Japan shares are higher, although the Nikkei 225 is struggling to hold gains. The ASX 200 is down 0.36%.
• In SEA, the picture is mixed, although more markets are down than up.