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Break Higher In Eminis Spills Over To Asia Pac


Most major Asian bourses are in positive territory, but some markets are below earlier session highs. Afternoon sentiment has been lifted, due to a positive backdrop from US futures, which continue to build on gains from the overnight session. Eminis pushing above last week's highs (+1.5% to 3745). No headline flow was observed in driving this move.

  • China markets remain laggards, just +0.10% for the CSI 300 & 0.15% for the Shanghai Composite. Reports of additional cities cutting mortgage rates hasn't done much to lift sentiment. Note the composite property sub-index is off by close to 0.90%.
  • Other property sensitive assets like iron ore and steel commodity prices, are also lower today. Growth concerns continue for the broader China economy, with no major shifts in the policy outlook evident from the current Party Congress, at least at this stage.
  • The Kospi opened up +1.8%, but fell back close to flat, before rebounding again (+0.80% to 2237). Onshore wires reported that the authorities could enact a short selling ban if the Kospi dips below 2000. The authorities are also looking at how to deploy the stabilization fund (10t won), which would likely come after any short ban announcement.
  • The Nikkei 225 is back up above +1% for the session. Toshiba has been a laggard after Reuters reported the buyout price for the firm is seen falling sub 6000/yen per share.
  • The ASX 200 is on par with regional outperformers, up just under 1.6% at this stage.

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