Early Optimism Doesn't Have Much Follow Through

Early positive impetus in the equity space has given way to a more cautious tone in regional equities as the session has progressed. Most markets are away from best levels, with some markets slipping into negative territory. US equity futures have struggled to stay in positive territory as well.

• HSI opened up firmer, buoyed by China tech stock gains in the US overnight. The market was pleased with Alibaba's buyback plan, while China gaming stocks rallied on fresh approvals from regulators on new games.
• The HSI tech sub-index is up around 3.40% currently, although down from session highs. The broader HSI index is up a more modest 0.56%. There hasn't been much positive impetus from headlines that the Biontech Bivalent covide vaccine has approved for emergency use.
• China stocks are around flat, with the CSI 300 +0.07%, but Shanghai Composite slightly down. A PBoC advisor stated China's growth target should be at least 5% next year, with higher levels possible if Covid restrictions are lifted in the first half.
• The Kospi opened up firmer, buoyed by a Goldman Sach's upgrade, but has trimmed gains as the session progressed. We currently sit +0.20%, just under 2448, we were above 2470 in the first part of the session. North Korea's reported ICBM test has likely taken the shine of South Korean assets, although the impact doesn't look large.
• Moves elsewhere have been mixed, the Nikkei 225 couldn't hold early gains (last at -0.10%), while the Taiex is down -0.25% at this stage. The ASX 200 is up modestly, last +0.20%.