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China Equities Modestly Firmer As Policy Support Steps Up


Major regional equity indices are mostly tracking higher as the US NFP print comes into view. Much focus has been on China stocks, as the authorities look to boost sentiment via a number of avenues. Markets are firmer, but away from session highs. At the stage US equity futures are tracking modestly higher. Eminis last near 4522, (+0.13%), while Nasdaq futures are near 15550, also a touch firmer.

  • For China, local banks have cut deposit rates, while downpayments for home loans and mortgage rates are coming down as well. We also saw renewed efforts to stabilize/boost the yuan, with the reserves on FX deposits that local banks have to put aside reduced to 4% (from 6%)
  • The CSI 300 sits higher, +0.51% at the lunch time break. Earlier moves above 3800 (+1%) weren't sustained, the index back to 3788.4 now. The real estate sub index is up 2.35% at this stage, reversing part of yesterday's 5.32% dip. This index is tracking higher for the week though.
  • Note Hong Kong markets have been closed today due to a typhoon.
  • Elsewhere, Japan stocks are firmer, with the Topix up 0.80% at this stage. Gains in Sony a standout. The Kospi (+0.25%) and Taiex (+0.25%) are seeing more muted gains.
  • The ASX 200 is down 0.30%, while in SEA, most markets are modestly firmer at this stage. Thailand stocks are around flat, after a strong rally through the second half of August.

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