The late pull lower for the major Wall.....>

EQUITIES: The late pull lower for the major Wall St. indices weighed on risk

during Asia-Pac trade, with firmer than exp. Chinese trade data doing little for

broader risk sentiment. Driving factors behind the pull lower in late NY hours

were: Sino-U.S. tension, the re-shuttering of some businesses in California and

a few equity market idiosyncrasies at the fore.

- The Sino-U.S. sabre rattling continues, although BBG sources noted that "top

advisers to President Donald Trump have ruled out undermining the Hong Kong

dollar's peg to the greenback as they seek to punish China for infringing on the

territory's political freedoms." A reminder that chances of a move against the

USD/HKD peg was already seen as remote.

- Mainland China equity markets continue to experience surging margin interest.

There was a dead cat bounce for mainland equities in the morning, with the major

metrics paring their early losses, before fading again.

- U.S. earnings seasons is in focus.

- Nikkei 225 -0.8%, Hang Seng -1.6%, CSI 300 -1.3%, ASX 200 -0.4%.

- S&P 500 futures +4, DJIA futures +48, NASDAQ 100 futures +33.