Eminis Threatening Break Higher, March 2022 Levels Within Sight

Regional equities have mostly tracked higher today. Spillover has been evident from higher US equity futures, which has aided broader risk appetite in the region. At this stage, Eminis are around +0.30% higher, last in the 4609/10 region. This is right on fresh highs going back to March last year. Nasdaq futures are outperforming amid a softer US yield backdrop post the FOMC. The Sep contract is up 0.65% at the time of writing.

• China related markets have also performed well. The HSI is up 1.36% at the break, with the tech sub index now 20% above May's trough point. Today the HSTECH is up nearly 3%.
• On the mainland the CSI 300 is up 0.54%, with the real estate sub index +0.77%. Onshore analysts expect housing restrictions to be relaxed in H2, with renewed confidence in this outlook post the Politburo meeting at the start of the week.
• Japan stocks are firmer, with the Topix near +0.50%, the Nikkei 225 +0.75%. The yen was firmer in early trade, but is away from best levels. No policy changes are expected at tomorrow's BoJ meeting.
• The Kospi is +0.70%, but the Kosdaq has continued to retrace, down a further -0.80%, after yesterday's ~4% fall on valuation concerns for EV battery related companies. The BoK has boosted liquidity support for the banking sector.
• In SEA, gains are more modest, while Philippines and Thai equities are tracking weaker.