Australian Stocks Surge On Commodity Prices, Better China Data

Regional equities are a sea of green in Asia Pac for Friday trade. Positive leads from US/EU markets on Thursday is helping, while US futures are a touch higher at this stage. Eminis were last near 4565, +0.20%, while Nasdaq futures were around 0.25% higher at 15714. We sit slightly down on best levels for the session. Announced strikes by the UAW at a number of US car manufacturers hasn't dented equity futures sentiment materially at this stage.

• Australian stocks are among the best performers, the ASX 200 up a little over 1.5% at this stage. Firmer commodity prices, particularly in terms of iron ore and oil, is seeing the materials sub sector outperform.
• Better than expected China IP and retail sales data for August is adding positive momentum to this theme.
• Hong Kong stocks are also up strongly at the break, +1.66% for the HSI. China's 1yr MLF rate was held steady at 2.50%, but the rollover amount larger than expected, leaving a net cash yuan injection of 191bn. This coupled with yesterday's RRR cut announcement is driving optimism around the growth recovery.
• Still, on the mainland, China shares are barely in positive territory at the break, the CSI 300 up 0.06%. The Shanghai Composite is doing better, at +0.28%.
• Property developer concerns remain though, with Sino-Ocean suspending all offshore debt payments, while Country Garden has further delayed a bond extension vote to Monday.
• Japan (Topix +1.25%) and South Korean (Kospi +1.3%) have outperformed the Taiex (+0.20%).
• In SEA, most markets are firmer, although Philippine and Thailand market are struggling for positive traction.