haidi: this is daybreak: asia. we are coming down to major market opens. a few seconds out for the start of trade in japan. the attention going to be focused not only on tokyo with the boj but there is the attention coming down to china's markets. we saw the csi 300 hitting a five-year low. paul: that is right. it was not just the csi 300. stocks in hong kong taking a beating. the hang seng fell below 15,000 points on monday. a level we have not seen since 1997. we heard from chinese premier calling for forceful measures to address this. annabelle: one of the reasons we

have seen a lot of investors pivoting away into japanese markets. the nikkei rising nearly 10% over the course of this year alone. our of that coming down to what has been a dovish boj. today we have a decision due in the next few hours. the expectation from all of the economists we surveyed and we have steve on the ground. a hold -- a change is expected. the messaging we get from governor ueda is going to be crucial to watch what he signals around inflation and where the price pressures are starting to take hold in a sustainable manner. the start of trade we are seeing for stocks. japanese yen continuing to hold at the 148 mark. a bit of weakness. some of the stocks we are watching in the session. sony is going to be one of those. we see trading online a little bit higher. yesterday the big news was sony officially called off its plan

of a $10 billion merger with z entertainment in india. they are seeking $90 million of a breakup fee. has been two years we have tracked of drama and delay in the deal. not going ahead. let's take a look at what is happening in korea. the focus going to be on what came through in the wall street session. further gains for u.s. stocks. investors focusing on economic resilience. also the outlook for earnings over this coming week. magnificent seven. one to watch. check stocks continuing to push higher. nasdaq futures flat. we are seeing gains come through on the kospi. the korean you want steady. something else that those have a bearing on equities as the health of its major trading partners. china one of those. we have seen the benchmark slumping to a five-year low. trying to stem the slide. policy and some sort of policies to do so.

something that was on australia too. -- that weighs on australia too. paul: reasonable optimism on the a sx and the materials sector which is so reliant on china. the broader a sx up almost have a 1%. aerials better by 4/10 -- materials better by four chance of 1%. we are seeing the aussie dollar slip off the pace a little bit. was just below $.60 yesterday. yields have been gradually falling. crude is an interesting one. the number of ships passing through the straight between the horn of africa and yemen continues to decline. that straight is -- roughly translates to gate of grief how appropriate. we have yields falling in australia. if we take a look at u.s.

yields, the 10 year pulling back some of the highs we saw toward the end of the week. we did hear from bill gross earlier on. the pimco co-founder. he is saying the fed should not keep policy restrictive for too long or it could end up in a recession. annabelle: the pullback is something that has taken a little pressure off the boj because they are expected to keep their main monetary policy steady. our chief north asia correspondent steve engle is outside the boj headquarters in tokyo. as we said, nobody expecting a change today but we could get something in the inflation outlook possibly. stephen: that is right. that is what the nikkei is reporting this morning. the boj could revise its outlook for fiscal year 24 which starts in april and fiscal year 25 which is the following year. on the cpi front.

the forecasts are for to play percent growth in cpi for fiscal year 2024. and 1.7 percent for 2025 a drop of is expected. the nikkei reporting the boj in this review could upgrade its inflation forecast for 2025 fiscal year to 2%. from 1.7 to 2%. that would be an interesting indication of the boj's assessment inflation, higher inflation is potentially sustainable. keep in mind japan's inflation has stated above the 2% goal since april of 2022. yet governor ueda and other board members at the boj are still a bit cautious. most economists feel the conditions, the inflationary conditions in the economic growth conditions indicate that they could hike. come out of negative interest rates for the first time since 2007. again, the doves outweigh the

hawks on the boj. the six board members, two vice members and the governor we moan the side of the business. they don't want the blowback of dialing back stimulus to early. right now the signs are not indicating sustainable inflation just yet. what we have to look for is wage gains. the shinto which is the annual wage negotiations between companies in the unions start in march. they should be concluded by april. if there is a significant hike in wages, it is a precursor for raising interest rates at the boj. we will watch for that. that is why most economists are expecting in april exit from negative rates. that would also -- 3450 economists surveyed by bloomberg

expect april to happen, 40 five out of 50 expect for sure by july. paul: we do have a chart that illustrates those expectations. pretty heavily weighted toward april. if we take about july, why is that considered as option b in terms of going for a hike. stephen: beyond july might be a little too hard to predict right now. jose it is going to happen before july because any after that would -- all signs indicating the ecb and fed will likely cut by midyear or thereabouts. the bank of japan would like to see themselves hike before the other central banks start cutting. keep in mind why april looks interesting. there has been pressure on the households of japan right now. that is why we are not seeing it in the first couple months of this year coming out of negative interest rates should the

households have seen their pricing power weaken considerably whether it is due to higher input costs because of energy, costs have gone up. their real pricing power, there real wages have started going down kid until they see a hike in wages, they are going to continue with this mentality. giving their money under the mattress. the boj is likely to remain cautious for now but as we get the wage negotiations going, by the end of april, we could start seeing hikes to paul: chief north asia correspondent stephen engle at the boj headquarters in tokyo awaiting that decision. the annual goldman sachs global macro conference is underway in hong kong. let's get back to the event where our markets, and yvonne man is standing by with our next guest. >> there is lots to talk

about anklet and japan but i want to bring in the chief aipac strategist running us in hong kong. good to see you back here in your old home. we have got to talk about the elephant china. it seems like there is renewed intense selling. are you seeing signs of panic? there are definitely >> couple things that explain it. there is a clear recognition china is facing significant structural challenges. those are well-known. they are broadly more concerns over the property market, demographics, slowing growth and so forth. there has also been concerned there is not a forceful a policy response as people had been hoping for. it has been this progressive slide in the market punctuated by occasional rallies but when the policy which has been hinted at does not fully come through, people have been selling the.

the last thing i will say is there are checkable -- there are technical factors in the market which have been exacerbating the down tempted that is that there are a variety of derivative structures we are heating not getting levels where the hedges against that have to be unwound. there is forced selling in the market. either the selling of self or the recognition of the selling is to come has caused the markets to come down further. yvonne: you take a look at the hang seng some 15,000, we are back to hand over levels. valuations, everything is below 0.9. are we reaching a bottom evaluation? >> i think we certainly are. the bells have to be ringing. just to put some numbers on the. we look at the msci china index as the more representative index but it overlaps with hang seng significantly. 62% from its february 2022 high. last night's close, we were at a

7.9 times consensus forward earnings. we are 18.3 times at the peak of february 2021 antelope just below the 55% reopening rally was a .1. even below the valuation terms. we are below levels where the market is pricing in distress. there should at least be a chance for some sort of contrarian or a bear market rally, it could be a significant one coming up. yvonne: you neutralized -- you are underweight on hong kong. you are still underweight a-shares. >> we are more cautious. we're differentiate between those two, a and h. yvonne: what point does this become problematic? is this systemic in some ways? what needs to change? is it still bigger stimulus that is going to arrest these declines? >> we just put out a paper this morning thinking about or just a the question of what would be needed to turn the market around.

there are a lot of areas you can talk about but to put it in more manageable buckets, three large categories. one, i think there needs to be a more sufficient policy response but not just discussion of that. also implementation. the market right now is in a mode where there has been a lot of promising of policy action or indications but not as much delivery. the psychology is one of you can call it show me the money. xiaomi the evidence of that the best evidence would be actual economic monthly data indicating there is some bottoming or stabilization in terms of the overall economy. that could either be through supply-side actions or demand-side stimulus but some sort of policy response. we are right into the reporting season. the delivery of corporate profits is going to be important. if underlying profits can come through, sentiment may stabilize. i think that the political

rhetoric were the political news flow needs to calm down somewhat . there is market research and over renewed intensification of market yvonne: corruption should mentioned earnings. msci china, earnings projection are around mid to high teens. is that ambitious? >> very ambitious. the bad news is the consensus is looking for 16% eps growth for msci for 2024. we are at eight. that suggests there is a round of downgrades to come. i was in europe last week. the investors are either at our numbers or a bit lower. i don't think the downgrades will be as market injurious as you might otherwise think. i think that has been pretty much priced. you mentioned about the intraregional disparity.

north asia has done well. china, thailand on the other side of this. does that continue in terms of foreign investor sentiment? >> the msci index, asia-pacific and japan index was up 5% for july 23. under the surface, there was a 35 percentage point between the best performing markets and the worst performing which were hong kong, china and thailand. that is carried through in the first three weeks of this year where china is down 10 to 12 and japan in local currency is up six, seven. the point we are making is under the surface of the broad index, there is a lot of help a differentiation opportunity that could reverse should you need to play the game under the surface as opposed to passively investing in the region as a whole. stephen: favorite market here right now? >> japan, korea, india. it is still those.

dependent is the bottom up corporate chain story. korea is the best cyclical recovery in the region should yvonne: always great to have you back. cohead of asia macro research at goldman sachs joining us at the global macro conference at the four seasons hotel. annabelle: we are going to have more interviews from the global macro conference. owing to be previewing the upcoming boj decision with the former boj research chief. up next, the countdown to tuesdays new hampshire primary and whether nikki haley can make up any ground on the runaway republican front wonder we are -- front runner. we are live to manchester. this is bloomberg. ♪

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annabelle: the race for the republican presidential nomination heads to new hampshire on tuesday. it is a test for former u.n. ambassador nikki haley who is looking to establish herself as a viable alternative to firm under donald trump. bloomberg's news director jodi schneider joins us from new hampshire. it has been interesting to watch the polls in the lead up. it seems like mickey haley has

lost ground in this. does that mean she did not take any voters away when ron desantis left the race entirely? >> we will not know that until the voting tomorrow. it does look like ron desantis's exit from the race does not help nikki haley. he endorsed former president trump right away. he was not pulling too well in new hampshire anyway, at about 6%. it is unclear that will go to her. given he endorsed former president trump, it is unlikely that helps her. her real case she has been making is to more independent voters. in new hampshire, about 40% of voters meet that criteria. it is looking like donald trump will get most of the republican voters but can she score with independence, that is the question if she can, she might be able to come in strong second

will raise the question as to whether she should stay in the race. if it is a weak second to donald trump, it is hard for her to make the case she should stay in this contest. paul: that is an interesting decision because the next major primary is south carolina which is nikki haley's home turf. what are the implications if she does not win in new hampshire and heads there? jodi's beyond the embarrassment of that, there is the question of spending time and energy in race you are unlikely to win. if donald trump is the head now, even before whatever happens in new hampshire so it is a tough situation for her. we'll see how she does tomorrow. new hampshire famously says they zig when others zag they do the unexpected. unless she does very well, the does seem like there's this and

evitable sense donald trump is working his way swiftly through the nomination, the republican nomination and it will be a much up again of 2020. annabelle: how much runway does nikki haley have left to try to convince voters she should be the one? jodi's she has been crisscrossing the state. she made an early pitch in new hampshire. this was a state she spent a lot of time in. she is still running those ads. she has made a strong case. the question is -- she wanted it to be a two person race. she wanted to be running against donald trump but his machine and his seeming to have tied up those republican voters, the republican vote here makes it difficult for her. we will find out tomorrow. the polls open early in the morning. they close at 8:00. the ap says it will not give a

winner. it will not call a winner until the polls are closed. paul: bloomberg's political news director jodi schneider in new hampshire should the u.s. and the u.k. say -- as the group continues to harass commercial shipping in the red sea. let's get the latest from our managing director for breaking news. since the united states and britain started targeting the rebels, how has the situation for shipping changed under the red sea? better, worse or the same? >> i think the shipping situation is that container commercial shipping was trying to avoid the area. there are trying to avoid the area going around africa. that adds miles, delays, expense. for the shippers, i don't think the situation has meaningfully changed. it has made them more resolute

to avoid the area. the u.s. is trying to find a solution to de-escalate. to get the houthis to stop launching attacks. to place pressure on iran because i ran has a lot of sway with these folks to get them to try to de-escalate the situation. right now, it is a little bit of a mess. there is not a obvious offramp on the table right now. as we go along. all of this is linked to a little bit to the israel hamas were. -- israel hamas war. if that is causally linked as the houthis say it is, can some resolution or de-escalation in

that conflict may be proved to be a pathway for a de-escalation in the red sea? annabelle: when it comes to de-escalation, we are getting conflicting reports because we are hearing israel is deepening its offense into gaza by the same time axios is saying we could have possibly a path to a pause in the fighting as well. >> i think those two things are interesting. i do think they can live together in harmony in the imagination. what axios top reporter is reporting is that the israelis have offered a deal that would be a two month suspension of hostilities in exchange for every single one of the hostages being released over time. that is all the ones who are alive as well as the bodies of those who are no longer alive. there would be some exchange.

some palestinian prisoners released potentially as part of that deal. but there has been escalating pressure on israel. not least of which from the united states to try to find a different pathway here. the e.u.'s top diplomat came out and said the other day israel is not succeeding in its objectives but it is seating hate for years to come. and i think there is a real concern here that the longer this goes on, the more intractable this becomes. one of the things i think i am also interested -- there is a lot of internal israeli politics going on. one of the things some of these folks on the side have stressed is a full resolution needs to come with a path to a two state solution. that is a very complicated thing

to say the least. annabelle: thanks for your timeshare that was our managing editor for breaking news in south asia. plenty more to come on daybreak: asia. this is bloomberg. ♪ ♪ (upbeat music) ♪ ( ♪♪ ) ( ♪♪ ) ( ♪♪ ) -awww. -awww. -awww. -nope. ( ♪♪ ) constant contact delivers the marketing tools your small business needs to keep up, excel, ow. constant contact. helping the small stand tall.

annabelle: you're watching daybreak asia. a quick check on how currencies are faring in the session. a bit of dollar strength coming through against most of the g10 peers. tracking the japanese yen closely because we are within two yen of 150. the level we last saw in november last year. certainly raising the risk of any intervention from japanese authorities. we are back to the goldman sachs global macro conference in hong kong to discuss the i don't want you to move. i'm gonna miss you so much.

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paul: breaking downtown out of australia. business confidence numbers from the national australia bank for the month of december. a bit of an improvement in business confidence rising seven points to negative one. we are still in contractionary territory. business conditions did slip by seven points to minus two. national australia bank's saying declining conditions led by manufacturing and construction. conditions remained weak in retail but elevated in the services sector. clear signs of further easing and import cost pressures in the month as well. an improvement in business confidence. business conditions slipping a little bit in december. got the aussie dollar trading at 65 three-quarter cents versus the greenback. paul: taking a look at what is happening in other currencies in

asia. the japanese yen the one to be watching today. we have seen it weakening. . the worst performer so far this year. losing ground with a focus on the boj staying dovish. the decision is due in a couple hours. no change is expected to the negative interest rate nor to its yield curve control program. certainly one to be watching in terms of the messaging we get out. japanese equities. up around half a percent. a bit of a changing of the guard. we have seen toyota passing tencent to become asia's third-largest stock. we have not seen that since 2016. it tells you not just how much investors are moving away from chinese assets but into japanese ones in turn. it is a focus at the annual goldman sachs global macro conference underway in hong kong. let's cross back to our event where yvonne man is standing by

with our next guest. yvonne: it is about the boj the next few hours. with me now is professor of economics at a university appeared he previously served as the research chief at the bank of japan. thank you for joining us. every economist we talked to ed bloomberg thinks they are not going to do everything today, but what do you want to hear from the boj at this meeting? >> we would like to confirm as far as the fundamentals are concerned. things going quite closely to what the boj predict. let me just explain one by one. first of all, as far as economic fundamentals are concerned, my judgment is even this time, the boj can lift the negative

interest rates. that is my judgment. this is not just my judgment. even today. given the high uncertainty associated with the outbreak or political scandal, at least in to -- this may not be a good time to change the monetary policy. if you think about it what will happen to the next, we would like to confirm as far as fundamentals are concerned, it is going toward the direction for the boj is looking at. that sort of thing i would like to confirm with today's monetary policy. yvonne: economically using fundamentals whether it is inflation, you think we have reached that point where they could move.

are we seeing sustainable inflation now? >> of course no one can say that -- what will happen in the future. the data so far we have seen in the japanese data, i think inflation dynamics seem to be changing dramatically. from what i used to see in my long career at the boj. the 1990's. let me give you some example for instance. if you look at the cori cpi excluding just as usual in the other country just excluding food and energy. the major cpi is 2.8% year on year. which is accelerated from 2.7% in november.

energy component went up and is coming down like this. this kind of thing is going up and going down. if you are just looking at the core image which is trying to exclude this broader item going up like this. i want to add more example. the wage component. if you look at the most steep part of the wage component, -- there is no -- that is kind of subject said the negotiations -- subject to the negotiations. that number itself is already coming up to 2% year on year. it used to be around 1%. something like that. it went up to 2%. it seems to be changing.

yvonne: real wages have not picked up. in terms of the shinto, what sort of wage growth do we have to see to secure this is difficult to percent inflation? are we going to see a better outcome this year? >> i don't have the exact number. the boj may not have the exact number. the negotiations are subject to a lot of things. what they are looking at, it is what i said. you can check. that component is going up. it is quite important. it is still 2%. that means the wage is still declining. maybe at some point, --

need to go up a little bit more. the core component of the cpi. yvonne: it seems like economists are betting it is april. that this is enough time for the boj to decide. this at the time to normalize. are you now in the april cap? -- april camp? >> because of the political scandal, my interpretation is the boj has a good fixture already. they so my at the boj. we have a lot of -- so -- suggest the labor market is tightening still. there is indication. yvonne: is there a risk of if

the fed is going to start cutting rates this year, is there a risk to the economy in any way? >> the boj lifting? yvonne: and then the fed cuts around the same time. how big a risk would that be? >> i don't see a big risk. the fed itself is doing their business. in accordance with the circle of development. if i may add one more thing, if the fed -- is associated with quite sharp contraction of the u.s. economy, -- yvonne: you have worked at the boj for three decades. you worked closely with governor

ueda before he became governor. how would you describe his leadership style? is there a need to revamp the communication strategy around the central bank? >> he has done a very good job already. one thing he has done already is -- a policy ration fund in the bank of japan. that is really important. he said [indiscernible] going to align with the inflation target. the economic focus is already there. he said the inflation target is already achieved if the forecast materializes. he says he is not confident enough. that is it. this communication style, he has -- [indiscernible]

i must say one more thing. he is a two hands economist. he always mentions on the one hand, and on the other hand. at the end of the day, you cannot understand what he is saying. this is his communication style. he is thinking about, life is quite complicated. as an economic scholar, he needed to have both hands. you need to be accustomed with his communication style. he has always fought for his position. that is his communication but he is doing a very good job. that is quite important. yvonne: thank you so much for joining us. from a research chief at the bank of japan talking about what

he thinks the boj is going to do maybe the next day today or the next few months. he says in terms of fundamentals, the boj is ready. annabelle: seems like everything is set in place to avoid from negative policy settings. we will have more insights from the goldman sachs global macro conference throughout the day including our conversation next hour with the bank's chief china economist. that is going to be one to tune into given the huge amount of pessimism we are continuing to see in chinese equities. yesterday, the moves and the selloff extended in the session. this chart here taking a look at the csi 300 tracking back at levels we have not seen for that benchmark in five years. everything is pointing to a battered market. you have nearly half of the members on the trading at a 52-week low. not just the csi 300 or mainland equity.

sometimes it can be more indicative of what is happening in the hong kong market pit we see the hsi falling back below 15,000. that is a level we have not seen since the 1997 handover happened in the city. 17,000 at the beginning of the year. we are no below 15,000. a 12% selloff in less than a month. really incredible move. let's get a preview of the chinese market open and see if we can see any sentiment shift. our stocks reporter is joining us. we were discussing -- you are saying a lot of the selloff yesterday is coming more down to snow bold derivatives -- snowball derivatives. give us context on what the derivatives are. >> in general as you mentioned, those concerns about the problems in china have been persisting. yesterday the reason we see such a drastic selloff is more like on the technical front.

in particular for a-shares, there were about 200 billion yen of snowball river thames. a lot of those snowball derivatives are tied to a level which is around the level we had seen yesterday. once the index dropped below that level, like many issuers of those derivatives, they have to sell their holdings around that level to maintain a delta hedging in their portfolio. that is why yesterday we see a drastic selloff of the csi 500 small-cap derivatives. it also csi 1000 which is a broader gauge in the a share. this is on the a share market. for hong kong, we are at a critical technical level. chaz we mentioned is at the lowest since the handover. we are about to wipe out the

gains since the opening last october. a lot of structure products in china have been tied to this level. when the index approaches the level, it was a lot of unwinding of the products happening in the markets. i guess both factories in china and hong kong have accelerated the selling yesterday. it is not the end yet. we are not sure how far this can go. let's see. for the market to turn around, we need decisive easing package. we need backstop from beijing to try to stop the problem in the property market slump. credit risk and give confidence to investors in the market. annabelle: what about -- i am interested because besides what investors are looking for which has some sort of stimulus from china, what about the general

attractiveness of other asian markets? we are seeing the inflows into india, japan, into korea. what can it be about china or hong kong that brings investors back in especially when you still have central banks like the fed staying high for longer. >> for a lot of asian managers when they are looking at this region, most of the investors are underweight china. if you compare the market cap to hong kong and india, india is about so surpass hong kong to become a larger equity market by market value. in that sense, i don't think investors are coming back soon to china and less like we have seen a very strong easing signal, a very clear rebound of the economy. before those happen, investors would not come back to the

market because of valuation. for japan and india markets when we talk to investors, they are still bullish. for japan, they have a good governors reform. they have a lot of things going on to push up the market pit for india, they have strong earnings growth. a lot of the stocks there are joining the valuation for a high-growth company. those things at the moment can't be found in the china market. annabelle: one to be watching what we see in the trading activity today. 40 minutes away from the open. our asian stocks reporter joining us. up next, our exclusive interview with the singapore exchange ceo on the outlook for trading in asia. this is bloomberg. ♪ j.p. morgan wealth management knows it's easy to get lost in investment research. get help with j.p morgan personal advisors.

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paul: the ceo of the singapore exchange says he is expecting or robust trading activity once mobile rates normalize. he also told the southeast asia's unicorns should consider coming to the market as conditions improve. >> southeast asia 10 years ago we hardly had a few unicorns. part of the ipo story. today southeast asia could boast 180 unicorns. market conditions more

conducive. coupled with the fact we do have a very effective singapore access into asia. that allows -- >> who do you think right now is your biggest rival? you are trying to get business from the hong kong stock exchange. what about the lsc in london? has brexit change the appetite for listing in the u.k. and can you take advantage of that? >> it is complicated. we probably have more collaborations with many other exchanges, other market business than any other exchange group in the world. our deposit receipt with thailand. more will come. exchanges are probably better by collaborating to create a bigger marketplace. >> if you look at london, do you think exit has changed london

listings? >> london has historical significance. strategy, geographic location coupled with enduring resilience. more economic growth. london remains. an open capital market. >> what are you expecting for this year as interest rates go down? >> we are a diversified business model. as rates normalize over the next 12 months, the stock market will probably increase. coupled with the fact asia continues to lead growth. paul: singapore exchange ceo speaking with francine lacqua. you can watch this live and see our past interviews on our interactive tv function tv .

you can dive into any of the securities or bloomberg functions we talk about. you can become part of the conversation by sending us instant messages during our shows. this is for bloomberg subscribers only. check it out at tv . this is bloomberg. ♪ the first time you connected your godaddy website and your store was also the first time you realized... well, we can do anything. cheesecake cookies? the chookie! manage all your sales from one place with a partner that always puts you first. (we did it)

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annabelle: you are watching daybreak: asia. we just got an alert crossing the bloomberg terminal coming from the issuer of the largest onshore etf tracking the japanese market in mainland china. this is the china amc nikkei 225 etf. we have seen the premium absolutely surging on the share price. we have actually seen it trading at a substantial premium in the secondary market. significantly higher than the reference net value of funds shares. it tells you it is another signal of the level of pessimism in mainland. equities investors are clamoring for alternative options. we have seen japan being a preferred stock market. investors invest blindly in the sort of thing. they could suffer serious consequences. that is what is prompting that warning of the risks of the japan etf given that premium to the underlying net asset.

the etf is in a trading halt. it has been suspended from trading until 10:30 a.m. local time. that is one hour after the start of trade. something we are watching given the level of pessimism coming through in mainland equities. this is another signal of the. -- of that. paul: most definitely. quite staggering from what we are seeing in china and hong kong. the extent of the selloff. the csi 300 taking a five year low on monday. we heard from the premier saying forceful measures are going to be needed. must feels like of the stage are going to be needed for the national team. the hang seng falling below 15,000 points. back at levels we have not seen from 1997 and the hand over. a new thing to consider today. snowball derivatives. annabelle: certainly the structure products one of the

key things being attributed to the market. of course there is hong kong. we can track that because we are back below the 1500 mark or 15,000 rather. we have not seen that since 1997 should the time of the handover pit we were at 17,000 at the beginning of the year. talking about more than a 10% drop in hong kong equities just this year alone. a lot of investors not seeing any reason to get back into the market at this point. we have still seen beijing reluctant to push through any sort of large scale stimulus. hong kong markets opening in half an hour from now. paul: that is right. . it will be interesting one to watch. off 12% so far in less than a month. have we reached the bottom? we are going to find out. that is it from daybreak asia. markets coverage continues as we look ahead to the start of trade in hong kong, shanghai and shenzhen.

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