Struggling For Clear Direction At Month End

A mixed round of inputs re: COVID matters, stronger than expected Chinese PMI data, a surprise round of liquidity injections from the PBoC (via MLF), month-end related flow and mixed Brexit mood music left the broader equity space struggling for a clear sense of direction in early Asia-Pac trade.

• Monday represents the final session of a record-breaking month for global equities (in terms of gains), which means potential headwinds from rebalancing flows and hedging activity.
• E-minis initially focused on the positives from the weekend, before running out of steam given their proximity to their respective all-time highs, while a heavy Asia-Pac session for crude oil markets also provided a source of pressure. This saw the space more than reverse its early gains, trading lower as we moved through overnight dealing.
• The CSI 300 outperformed its regional peers, aided by the aforementioned liquidity injection from the PBoC and stronger than expected PMI prints, which allowed the broader index to push higher, even after RTRS sources reported that "the Trump administration is poised to add China's top chipmaker SMIC and national offshore oil and gas producer CNOOC to a blacklist of alleged Chinese military companies."
• Nikkei 225 -0.7%, Hang Seng -0.5%, CSI 300 +1.3%, ASX 200 -0.7%.
• S&P 500 futures -17, DJIA futures -187, NASDAQ 100 futures -11.