Tracking Weaker, US Futures Lower, Oil Prices Up On Middle East Tension

Regional equity markets are mostly tracking lower in the first part of Wednesday trade. For the most part losses are modest, but sentiment has struggled amid a further rise in oil prices and on-going China property market concerns. US futures are down, Eminis last off by 0.10%, with higher oil prices weighing as a Middle East summit meant to held in Jordan was cancelled. We are off session lows though, the active contract last near 4397 (against earlier lows of 4386).

• In China, the CSI 300 sits 0.57% weaker at the break. Northbound stock connect outflows continue. This comes despite a better Q3 GDP print and higher y/y retail sales for September. Still, IP and retail sales slowed in m/m terms for September, and property sales/investment remained weak.
• A potential dollar bond default from Country Garden is also weighing on broader property sentiment. The CSI 300 real estate index is off a further 0.83%. The index has fallen in 7 out of the last 8 sessions.
• The HSI is off by 0.10% at the break, which is comfortably above earlier session lows.
• In Taiwan, the Taiex is one of the weaker performers in the region, off by over 1%. Weakness in the semiconductor sector is the main drag. South Korean shares are doing better, holding close to flat at this stage. The ASX 200 sits slightly higher in Australia.
• In SEA, most markets are down, although Thailand is outperforming, up 0.50% at this stage.