Chinese assets have had a stellar day with....>

CHINA: Chinese assets have had a stellar day with USDCNH down 0.5% on the day

taking the weekly drop to 1.5%. The pair last trades at 6.7530 as the 200-dma

comes into focus at 6.7196. EURCNH has dropped back below its 200-dma to bring

key neckline support 7.7350 into play. Below here would suggest significant

further yuan outperformance. 

- Equities have also shrugged off some midday weakness to sit up ~0.6% for both

A shares and H shares. Indices continue their recovery off the Jan 4 lows. 

- The strength in stocks has not translated to rising rates with 2-year swaps

actually down 4.5bps on the day bringing the Jan 8 lows into focus. A stronger

yuan is seemingly raising bets of further PBOC easing. 

- The only major news that hit today on China was a WSJ headline noting a

potential visit by China's top trade envoy to the US at the end of the month,

which seems to have provided a tailwind to assets.