Chinese equities drew focus again, with......>

STOCKS: Chinese equities drew focus again, with the Shanghai Composite more than

reversing its 2.2% opening losses on 3 factors:

- 1) Continuation of sizeable liquidity injections from the PBoC

- 2) PBoC leaning against CNY weakness via the USD/CNY mid-point fix

- 3) Potential for the "national team" to be active in the stock market, given

the threat of a ~10% sell off since the LNY re-open in early trade today.

- Elsewhere, Alphabet's poor after-market performance in lieu of its latest

earnings report provided some early pressure for U.S. equity index futures in

Asia, before a quick bounce, potentially on the "too close to call" comments

that accompanied the early assessment Democratic Iowa caucus (with the market

reaction seeming a little hasty, given the complicated nature of the process,

which is still ongoing amid some confusion), with further follow through on the

bounce in Chinese stocks.

- Nikkei 225 +0.5%, Hang Seng +1.2%, CSI 300 +1.3%, ASX 200 +0.3%.

- S&P 500 futures +20, DJIA futures +175, NASDAQ 100 +65