China Covid Hopes & Property Stocks Drive Gains

Focus has rested on strong gains seen for China/HK bourses. These gains have dragged other parts of the region higher, while US futures are also firmer by 0.30%-0.45% at this stage, reversing some losses from the NY session.

• The CSI 300 is up close to 3%, while the Shanghai Composite is +2.20%. Early gains were supported by no escalation in onshore social unrest, while a slight downtick in covid cases also helped. Later this afternoon the National Health Commission holds a briefing (3pm local time), with the focus on Covid prevention and control measures.
• The other benefit for local equities has been further support for the property sector, as the authorities announced late yesterday, whereby developers will be allowed to raise funds through share listings (among other things). The Shanghai Property sub-index is up 7.23% so for the session.
• The HSI is slightly down from best levels, last up 3.85%, while the Kospi (+0.80%) and Taiex (+0.75%) have made gains as the session.
• Japan stocks are laggards, down 0.53% for the Nikkei 225, the firmer yen trend likely not helping.
• South East Asia has been more mixed, Philippines down 0.90%, following a recent strong run higher, while the JCI is off a touch (-0.15%).