Japan Stock Rally Extends To 9th Week, China Indices Close To Flat

Most regional equity markets are tracking higher as we approach the end of the week. Japan stocks are leading the way, the Nikkei 225 up around 1.80% at this stage. China stocks are around flat, while US futures are down slightly at this stage. Eminis last near 4293.

• The rebound in Japan stocks follows a ~2.6% correction in the Nikkei Wed/Thurs. The index is back above 32000 but we are below intra-session highs form earlier in the week. The index is tracking higher for the 9th straight week.
• Tech related names have led the move, while BoJ Governor Ueda appeared before parliament. Ueda's comments didn't suggest any surprises at next Friday's BoJ meeting.
• China stocks are around flat at the break, the CSI 300 sitting close to 3817.50. Inflation data for May suggests a weakish domestic demand backdrop, which should keep easing calls as part of the market narrative. The CSI 300 property sub index is down 2.27%, the first drop since Monday. News outlets reported US Secretary of State Blinken may visit China next week.
• The HSI is +0.20% higher at the break, with tech up 0.59%. The index tracking slightly higher for the week.
• The Taiex (+0.80%) and Kospi (+1.00%) are tracking higher in line with tech related gains in US trade on Thursday.
• In SEA trends are mixed, Thai equities are down around 0.50% at this stage, pulling back a degree after yesterday's 1.71% gain.