Sentiment Softens, China Property Losses Weigh

Regional equity sentiment has generally deteriorated as Monday's Asia session has progressed. Hong Kong and China related bourses have been the weakest performers, further unwinding some of the recent gains seen. US equity futures are mostly lower. Eminis sit near session lows, off around 0.30%, last at 4555. Nasdaq futures are down more, off 0.45%. US yields are higher across the curve, ahead of key US data this week, including PCE figures. This may be tempering US futures sentiment at the margin.

• For China/HK stocks renewed weakness in property stocks is evident. The CSI 300 real estate index is off 3.0% at the break, the headline CSI 300 is down 1.2%, and back sub 3500 in index terms. For HK, the HSI is down nearly 1% at the break.
• Earlier we had headlines from the PBoC pledging financial support for the private sector. The central bank stated it will encourage banks not to cut loans for private companies that are facing temporary difficulties. This may be weighing on broader sentiment, with the financials index down 1.63%.
• China industrial profits were +2.7% y/y in Oct, positive but well off recent highs (17.2% in August). China President XI is scheduled to visit Shanghai tomorrow, including the futures exchange.
• Elsewhere, Japan markets are off 0.35% for the Topix, -0.50% for the Nikkei. The yen is firmer, +0.35% and back sub 149.00, which may be weighing.
• The Kospi is -0.15%, unwinding earlier gains. The Taiex is down nearly 0.50%.
• In SEA, most markets are weaker, but the JCI in Indonesia and the Philippines bourse are higher.