Chinese assets are holding their gains........>

CHINA: Chinese assets are holding their gains following a thawing of trade

tensions between US and China. Bloomberg News reported earlier that a proposal

to eliminate the 25% surcharge slapped onto U.S.-made cars this year has been

submitted to China's cabinet and would be reviewed in coming days, while

constructive comments by Trump on China have also helped.

- USDCNH is down 0.25% on the day consolidating its recent drop as the technical

picture becomes increasing bearish for the pair after yesterday's failure to

break above the 50-dma. 

- Stocks and rate markets are diverging again as expectations of further easing

keeps rates under downside pressure even as equities trade higher. There has

been notable underperformance of Mainland stocks relative to H-shares, as

reflected in the 1% move lower in the AH Premium Index.