Hong Kong Equities Surge On Multiple Support Points

Regional equities have been mixed today in holiday impacted markets. China markets are closed as the Golden Week holiday period kicks off. South Korean markets also remained closed. The stand out from a positive point of view has been the surge in Hong Kong equities. The HSI is up +2.7%. Trends elsewhere are mixed. US equity futures sit slightly higher at this stage. Eminis last near 4341, +0.08%. Earlier lows were at 4327.50.

• Hong Kong markets have been buoyed by a number of factors. Further support for China's housing market, with reports that Shenzhen will relax the mortgage rate floor for first home-buyers, is one positive.
• The FT notes that China cross-border data restrictions may be eased, which has also helped. The HSTECH index is up 3.66% at the break. The WSJ also notes that momentum is gaining for a potential Xi Jinping trip to the US.
• Elsewhere, Japan stocks are mixed, with the Topix down 0.50%, but the Nikkei 225 is a touch higher. Local bond yields continue to climb despite Tokyo core CPI printing weaker than expected.
• The ASX 200 is up 0.50%, aided by material stock gains, as firmer metal prices have boosted miners.
• In SEA, trends are mixed, with Malaysian, Philippines and Thailand shares lower. Indonesian markets have returned with a positive bias.