Hong Kong Stocks +2%, As Better Earnings Drives Sentiment

The regional equity tone is a positive one for the major indices in Tuesday trade to date. This follows gains in EU/US bourses during Monday trade. At this stage, US equity futures are a touch higher. Eminis last tracked near 4444.50. which is reasonably close to Monday session highs. Nasdaq futures are a tough firmer in (percentage terms), last near 15112.

• Among the strongest performers today have been Hong Kong shares. The HSI is around +2% stronger, just below sessions highs at the lunchtime break. The TECH sub index is +2.61%, building on yesterday's +1.69% gain.
• China EV market BYD rallied on strong Q2 profits, with further earnings due later. The South China Morning Post notes that 56 of 80 HSI members have reported earnings so far, with average earnings growth of 1.9%.
• In China markets initially opened lower, but sentiment has improved as the session progressed. At the break, the CSI 300 is +1.45% and back above 3800 in index terms. Positive spill over from HK moves is helping, while the onshore media stressed patience in terms of better market conditions.
• Japan stocks are lagging somewhat. The Topix +0.20% at this stage. Some chatter is local equities may suffer from China's export seafood ban.
• The Kospi is up 0.35% in South Korea, although offshore investors have sold -$74.4mn of local shares today. The Taiex is also lagging somewhat, last +0.20%.
• In SEA, most bourses are higher, but gains are comfortably under 1% at this stage. Philippine equities continue to lag broader sentiment, down a further 0.2% in the first part of trade today, as markets return from yesterday's holiday.