Chinese stocks have dominated today's.........>

CHINA: Chinese stocks have dominated today's trading with both the Hang Seng and

the CSI300 up ~2%, recovering yesterday's losses. The Hang Seng is breaking

above down trendline resistance from the Aug highs, pointing towards a bullish

trend reversal. 

- USDCNH has traded flat after early weakness was recovered ahead of the key

6.74 area, creating a potential bottoming pattern. A break above 6.78 would

trigger a bullish reversal. That said, yuan crosses remain on the front foot,

with CNHKRW consolidating gains above its 200-dma and CNHJPY extending its

recovery. 

- The selloff in bond futures has continued, with the 10 year losing another 12

ticks to extend its bearish reversal.

- On the news front the bond sell off/equity rally has been supported by a

reiteration from policymakers of prior proposals to cut taxes, support the autos

sector, and raise infrastructure spending. Our take is that widespread

expectations of further easing have already become priced into fixed income

markets.