Soft Start To The Week, Japan Stocks Outperform

Regional equities are mostly on the backfoot, with Japan bourses the exception. Headwinds have come from the negative Wall St lead on Friday, along with lower US futures through the first part of the Monday session. Eminis and Nasdaq futures are off by -0.35% to -0.45% at this stage.

• China and Hong Kong markets have again seen decent losses. The HSI is off by 2.3% at this stage, with the tech sub-index down 3.70%. The China Golden Dragon index fell sharply in US trade on Friday (-3.87%).
• The CSI 300 is off 1.67%, the Shanghai Composite -1%. Northbound stock connections flows have been negative for the second straight session. Tensions with US over the downing of an alleged spy balloon have weighed, although China comments don't suggest any further near term escalation.
• The China authorities also disagreed with the IMF on the China housing outlook and called the organization's 5.2% growth forecast this year too conservative.
• Japan stocks are higher, with the Nikkei 225 up 0.75% at this stage. Reports that the government have approached Deputy Governor Amamiya as a potential successor to Kuroda has likely helped, as Amamiya is seen as more on the dovish side relative to other candidates.
• The Kospi & Taiex are lower (-1.25% & -0.95% respectively). The ASX 200 is down -0.25%, with lower commodity prices note helping.