China Property Stocks Surge On Fresh Policy Support

HK/China stocks have continued to rally, following further support measures announced for the property sector. Trends elsewhere in the region are more mixed though, with lower US futures likely weighing at the margin. The main US indices are off by around -0.20-0.40% at this stage. Hawkish Fed speak at the start of the Asia session has been a likely headwind.

• The HSI shot higher at the open, but run into resistance around the 18000 level. The index is still 2.9% higher for the session and is moving back towards this resistance level. The tech sub index is +3.3% higher.
• The CSI 300 is up 1.15%, while the Shanghai Composite Index is +0.7%, led by the property sub-index, +4.5%. This follows China's release of a 16 point plan around addressing issues in the housing sector. This came straight after the 20-point plan around adjusting CZS. Coming up later is a meeting between China President and US President Biden ahead of the G20 meetings in Bali (the meeting takes place at 5:30pm Bali time, which is 9:30am BST).
• The NIkkei 225 is down around 0.80% at this stage, led by the tech sector, while the Kospi has struggled to stay in positive territory. The Taiex has done better, up by 1.35% at this stage.
• The ASX 200 is down slightly, despite generally positive commodity price gains. Weakness in consumer/finance names has outweighed gains from resource stocks.