Japanese stocks went into the lunch....>

JAPAN STOCKS: Japanese stocks went into the lunch break in positive territory,

the Nikkei 225 up 34.23 points at 19,959.41. The index opened in slightly

negative territory but quickly rose into the green on the positive lead from US

stocks. Earnings are driving the index higher, with strength in the

financial/tech sectors helping to offset yen strength. USD/JPY is down around 20

pips on the day at 110.06 and the lowest levels since mid-June.

- The Nikkei 225 took a slight stumble after a lower final reading for the

Nikkei manufacturing PMI indicating the slowest pace of expansion in 8-months.

Stocks then recovered to session highs, challenging the 20,000 level before

dropping down to morning close levels as the yen saw another bout of strength.

- Futures in the US are performing strongly, Dow futures up around 91 points

which is seeing some rotation from US tsys to equities.

- Other stocks in the Asia-Pac region are also in the green, supported by a

commodity rally and a robust reading in the China Caixin Manufacturing PMI (51.1

from 50.4 last time out). Chinese stocks are seeing robust performance with the

CSI 300 up 20 points and the Hang Seng up 135 points.