Bid Extends Ahead Of U.S. CPI; Chinese Biotech Sinks On Biden Order

Most Asia-Pac equity indices are firmer at typing, with Chinese, Hong Kong, and South Korean markets largely outperforming peers on their first day back from the extended holiday, as tech and high-beta equities have led gains ahead of the U.S. CPI reading later today.

• The CSI300 is 0.7% firmer at writing, hitting fresh three-week highs earlier in the session on outsize gains in the high-beta consumer staples sub-index (+2.1%). Chinese developers notably underperformed, with the CSI300 Real Estate Index trading 0.5% lower despite recently announced policy support measures, keeping in mind wider uncertainty in the space ahead of the CCP’s 20th Party Congress in mid-October.
• Elsewhere, Chinese biotech stocks on both Hong Kong and Chinese mainboards such as WuXi Biologics (-18.4%) and Porton Pharma Solutions (-9.3%) came under severe pressure in the wake of U.S. Pres. Biden’s order on Monday re: support for the U.S. biotech industry, aimed at reducing reliance on China.
• The KOSPI (+2.6%) was the region’s best performer, with the heavyweight Electrical and Electronic Equipments sub-gauge (+4.0%) contributing the most to gains, as the sector played catch-up to a similar region-wide bid on Monday following source reports of potential White House curbs on exports of chips to China.
• E-minis sit 0.1% better off apiece, having held just shy of their respective three-week highs made on Monday through the Asian session.