Mixed Performances Ahead Of FOMC

Asia Pacific equity markets are mixed today. China/HK higher, while the rest of the region struggles for the most part. US equity futures are higher, which is likely helping to cap losses.

• China related markets had a positive lead from the Dragon index overnight, which rebounded close to 7% in US trading. Better than expected activity data for May has added to the positive mood. IP, retail sales and FAI all came in stronger than expected and China officials stated economic momentum should improve further in June.
• The CSI 300 is up around 1.5%, the Shanghai composite +1.30%, while in Hong Kong the HSI is +1.5% higher, with the tech sub-index up close to 2.30%.
• Korean equities remain laggards, with onshore tech sentiment weighing. The Kospi is down 1.5%, the Kosdaq over 2%. Foreign investors have shed another $426mn in local equities today. This brings week to date net outflows close to $1bn.
• Japan markets are also lower, but losses are a more modest 0.6-0.7% at this stage. Yen and onshore bond market volatility continues in the lead up to this Friday's BoJ decision.
• US equity futures are positive at this stage. S&P500 around +0.50%, while Nasdaq tracking closer to +0.75%.