Hong Kong/China Markets Rise, But Are Away From Best Levels

Most regional equity markets are higher. Focus has been on gains in HK and China markets post additional fiscal stimulus measures. We are in positive territory, but indices are away from session highs. Elsewhere South Korean and Australian shares are lagging. US futures are down following mixed after late earning results from tech bellwethers. Eminis are off 0.2%, last tracking near 4262, which is just above the simple 200-day MA. Nasdaq futures are down by more, off 0.40% at this stage.

• In early trade Hong Kong's HSI was up comfortably over 2%. At the break though gains had been pared to +1.18%. We had a strong lead from the Golden Dragon Index in US trade on Tuesday, up nearly 4%, amid fiscal stimulus optimism (post the government's approval of an additional 1trln yuan in bond issuance).
• The properties sub index rose over 3% as Hong Kong Chief Executive John Lee delivered his annual address, which included cutting the home purchase tax on second homes to 7.5% from 15%. Again, though gains have been pared, the index last near +1%.
• Lee also stated that the stamp duty on stock trading would be cut to 0.1% (from 0.13%). This move may have a positive impetus post the lunchtime break.
• It has been a similar story for mainland shares, at the break, the CSI 300 is up 0.50%, we were +1.1% in earlier trade. Vice Finance Minister Zhu Zhongming stated that the extra fiscal stimulus will still leave the government's debt ratio manageable (see the Global Times link here).
• Japan stocks have posted healthy gains, up over 1% for the major benchmarks. South Korean shares are struggling though, the Kospi off 0.60%, foreign and institutional selling not helping.
• The ASX 200 is down slightly, the Q3 upside surprise on CPI weighing. Philippine stocks are around flat, as the market awaits whether an off-cycle hike is delivered tomorrow.
• Thailand and Indonesian indices are doing better though.