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Hong Kong Equities Rally/USD Softens

CROSS ASSET

Hong Kong equities are firmer, with the HSI up 1.5%, after opening around flat. The tech sub-index is up over 1%. There have been obvious catalysts for the move, but broader equity sentiment is more positive, with US futures tracking higher, while major regional bourses are tracking higher as well in the last part of trading (Kospi to +0.40%, Nikkei +0.40%). China equities are firmer from the open as well.

  • We are also seeing some spill over to the FX space, with the USD lower, the BBDXY off by 0.10/0.15%, with higher beta FX leading the way. AUD and NZD both up around 0.25%, while USD/CNH is down 0.15% to 6.9400. Yen is lagging, close to flat at this stage.
  • US yields are closed to unchanged, edging down from earlier highs.
  • China trade data is still to print.

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