Asia Pac Markets All Higher, Nasdaq Futures Closing In On 2023 Highs

Regional equities are a sea of green, post strong US gains in cash trading on Tuesday, as the US CPI miss buoyed risk appetite. Higher beta plays are outperforming in terms of Hong Kong and South Korea. US futures are tracking higher, Eminis last near 4521, +0.22%, not quite above Tuesday highs. Nasdaq futures are +0.28% (moving above Tuesday highs) and within striking distance of 2023 highs just above 16000.

• US yields have tracked down modestly further, following sharp post CPI losses on Tuesday. Market speculation of an end to the US tightening cycle buoying the risk mood.
• The HSI is up 2.83% at the break, with broad based gains. The HSTECH index up 3%, while the mainland properties index is up over 4.25%. Reports from BBG late yesterday of fresh support into China urban redevelopment and affordable housing aiding sentiment.
• Still, the mainland CSI 300 real estate index is only 0.30% higher at the break, the aggregate index 0.67% firmer. Earlier we had a steady 1yr MLF rate but a net 600bn yuan injection (the biggest since Dec 2016). October activity data was mixed, retail sales beating on the upside, but property headwinds weighing on investment.
• Headlines from BBG have also crossed the regulators will cap the OTC derivatives business for securities firms (see this link).
• South Korean markets are up over 2%, the Taiex is +1%. Japan's Nikkei 225 is +2.35% in latest dealings, shrugging off the disappointing Q3 GDP data earlier.
• In SEA, Thailand and Indonesia markets are up over 1.5%. Other markets are up less than 1% at this stage.