Signs Of Life In China Housing Market Doesn't Shift Sentiment

All major regional markets are higher in the equity space, but gains have been trimmed as the session has progressed. Some markets are comfortably away from best levels, while US equity futures have tracked close to flat. The firmer US cash Tsy yield backdrop in the front end this afternoon (2yr near session highs around 4.32/4.33%, before edging lower) has likely curbed sentiment to a degree.

• The HSI is close to +1% firmer at this stage. China developers are doing better, a Bloomberg gauge up 2.43%, the first gain in 8 sessions. China's activity data showed less of a drag from property investment, while property sales rose. Part of this is likely base effects, but it may also signal a trough point from late last year for the troubled sector.
• Other China activity figures were much closer to expectations, with IP slightly softer than forecast. The market may have been hoping for more upside surprises given the recent PMI prints. The CSI 300 is +0.20% at this stage.
• Elsewhere relief in the financial sector has benefited regional banks. The Topic is up 0.75% at this stage. Tech gains are also helped. The Kospi +1.30%, while the Taiex is +0.42%.
• In SEA, Indonesian stocks are somewhat lagging, the JCI only just in positive territory. At the other end of the spectrum, Thailand stocks are up +2.60%.