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EQUITIES: China Equity Rally Extends, Mixed Trends Elsewhere

EQUITIES

Regional equities are largely in the green today with Japanese Equities the exception. US Equity futures are close to unchanged today after a pull back on stronger than expect PMI data overnight, outside any notable new headlines, equities are expected to trade sideways going into a busy night for data.

  • Nasdaq futures, are lower by -0.05%, while Eminis were last unchanged, headlines out early around Boeing, being halted from any further 737 Max Aircrafts product increases, may be weighing on sentiment.
  • Japan Equity indices are fluctuating a bit today with the Nikkei trading down 0.85% early only to sharply rebound. The yen is largely unchanged, while yields on JGBs continue to move higher on the back of weak auction data, as traders speculate the BoJ will move away from negative rates this year. The Nikkei 225 is down -0.10%, while the Topix is down -0.10% at this stage.
  • Hong Kong continued its strong week as the announcement of a rescue package to boost China equity markets drove sentiment, Hang Seng currently trading 1.25% higher today.
  • China mainland stocks are tracking well today CSI 300 up 1.80%, while the Shanghai Composite is trading 2% higher, after the PBoC announced it would cut the RRR, while also announcing a set of rules to govern property developers, pushing the mainland China property index higher for the third straight day, currently up 2.65%,
  • In Korea, Sk Hynix, the world's second largest chipmaker, reported a surprise profit, revenue climbed to 11.3 trillion won, beating even the highest forecast. This didn’t help the share price though, trading lower by 2.40%, this has weighed on the Kospi trading unchanged currently.
  • The Taiwan Taiex index has continued its winning streak, chipmakers lead the way as ASML reports orders have more than tripled last quarter for its High-End Chip Machines. Taiex is currently up 0.70%
  • In Australia, the ASX 200 continues its winning streak trading 0.40% higher today on the back of strong gains from the miners, as Iron Ore futures rallied after the PBoC announced cuts to RRR. In SEA, markets are mixed with the Nifty 50, Philippines PSEi off roughly 0.50%, while Indonesia and Malaysia trade 0.50% higher.

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