HK/China Shares Higher Again On Stimulus Hopes But Not Much Follow Through

Hong Kong and China stocks are in focus today. Hong Kong stocks have seen the greatest degree of volatility, starting weaker, before rebounding strongly on fresh stimulus hopes. Regional equity trends have been mixed elsewhere. US futures are close to flat, following Monday losses. We did see a small blip higher as HK shares rose, but there wasn't much follow through. Eminis were last around 4281/82.

• The HSI got close to 19400, but we now sit back near 19200 at the break, around 0.50% higher for the session. The HS Property sub-index is +1.59%, we were closer to +3% in earlier trade.
• Onshore China media ran reports, which stated new loans should rebound in May, whilst also stating RRR and interest rate cuts were possible for H2, quoting policy experts. This follows reports from last Friday of potential property market stimulus, per Bloomberg.
• The HK equity moves dragged mainland China stocks higher after a weaker start, but at the break, the CSI 300 is only 0.09% higher at this stage. The property sub index is +1.50% higher though.
• Elsewhere, trends are mixed. Japan stocks are modestly higher, +0.40% for the Nikkei 225, while the Taiex is +0.10% Onshore South Korean markets are closed today.
• The ASX 200 is down 0.50%, financials have been a weak point.