Higher As Tech Names Lead Bid, Chinese Easing Bets In Focus

Virtually all major Asia-Pac equity indices are higher at writing, with blue-chip and tech-related names across the region catching a bid following a positive tech-led rally from Wall St.

• The Nikkei 225 outperformed major regional peers at +1.1%, on track for a second day of gains with ~200 of its 225 constituents in the green. Cyclical and tech-related plays were notably firmer, with large-caps Fast Retailing and Tokyo Electron leading gains in the index for a second day.
• The Hang Seng sits 0.4% better off at writing, on track for a third straight day of gains. Broad gains were seen across nearly all sectors of the index although financials struggled, mostly trading flat to lower at writing. China-based tech caught a bid as well, seeing the Hang Seng Tech Index deal 0.9% firmer at writing. Large-cap Alibaba Group notably underperformed its HSTECH peers however, grabbing headlines as reports pointed to co-founder Jack Ma’s Ant Group coming under investigation from China’s top anti-graft agency (among other agencies).
• The Chinese CSI300 trades 0.7% higher at writing, with a rise in consensus towards impending PBoC easing measures evident. Of note, a BBG report has highlighted that 15 of 20 economists surveyed currently predict that the PBoC will lower rates on the one-year MTLF on Friday, with 11 calling for a 10bp cut to 2.75%.
• U.S. e-mini equity index futures are 0.2% to 0.5% firmer, dealing a little below their respective session highs at writing.