Eminis Track Higher To 200-day MA, China Real Estate Index Continues To Struggle
Equity sentiment is positive across the Asia Pac region in Thursday trade, although China markets are only modestly firmer at this stage. Most focus has been on digesting the Fed outcome from Wednesday. US equity futures are higher, following positive gains on Wednesday. Eminis sit near 4266, +0.25% in latest dealings. This puts the active contract back to the simple 200-day MA. Nasdaq futures are slightly higher at +0.40%.
- Some of the stand out gains today have been in tech sensitive countries. The Kospi is +1.80%, the Kosdaq +4.2% in South Korea. The Taiex is up 2%. Tech outperformance is in line with sensitivity to US yield movements/Fed outlook.
- In Hong Kong the Tech sub index is +2.30% higher at the break, the headline HSI +1.20%, although this is away from earlier highs. Japan markets are lagging somewhat, but still in positive territory (Topix +0.30%).
- Mainland China shares are a touch higher at the break (CSI 300 +0.1%). This is down from earlier highs. The real estate sub index is down modestly further. This sub-index is at fresh multi-year lows. The PBoC reported outstanding property loans contracted (on an annual basis) for the first time in September (BBG).
- In SEA, Indonesia's JCI is the standout, +1.8%, while Thailand's SET is +1.25%. More modest gains are evident for bourses in Singapore, Malaysia and the Philippines.