China/HK Shares Surge On China PMI Beats

Regional equities received a shot in the arm from the stronger than expected China PMI prints. Most of the benefit has been seen in terms of HK and China related shares, but most major indices are tracking higher at this stage. US futures are away from worst levels, with Eminis back to around flat.

• The HSI is up by 3.4% at this stage, with the high beta Tech sub-index +5% for the session so far. China mainland markets are seeing a more muted response, but the CSI 300 is still +1.50%. Northbound stock connect flows are positive, +6.5bn yuan, the first positive day of inflows since last Tuesday.
• The PMI beats point to stronger near term activity. This comes ahead of the upcoming People's Congress, which begins this weekend.
• Other markets have seen much more modest gains, with the Nikkei 225 +0.20% at this stage, while the ASX200 is around flat. Disappointing Q4 GDP data and concerns around slowed domestic spending weighing at the margins.
• Indian shares are higher, the Nifty +0.65% as it looks to move back above the 200-day MA.