China/HK Sentiment Continues To Recover

The focus remains on China/HK trends, which have remained positive today, despite weaker October activity data for China. Trends elsewhere have been more mixed, although losses haven't been large in markets which are down. US futures have mostly tracked higher (+0.40/+0.60%) for the major indices, offsetting part of the negative lead from overnight.

• The HSI is up over 3.5% at this stage, now clear of the 18000 level, while the tech sub-index is +8%. Developer, Country Garden, has weighed, with shares in the company down sharply, after announcing it will place shares to raise funds for offshore debt payments.
• Still, the Shanghai property sub-index is still up a further 1.12%, the 8th straight session of gains. The CSI 300 is +1.47% at this stage.
• Some thawing in tensions between the US and China, post the meeting between the two presidents late yesterday in Bali, has likely aided broader sentiment. October activity data was weaker across the board, but hasn't impacted market sentiment too much.
• The Taiex is up 2.4%, led by TSMC gains, as it was revealed Berkshire Hathaway added shares of the company during Q3. The Kospi has been around flat levels for most of the session.
• The ASX 200 is down smalls (-0.1%), but is away from worst levels as better HK/China equity sentiment spilled over this afternoon.