Mostly Higher As Chinese Equities Catch A Bid On Politburo Pledge

Asia-Pac equity indices are mostly higher at typing, bucking negative reception from an after-market earnings beat from mega-caps Amazon and Apple. Chinese stocks are in the midst of a broad surge on an announcement from the Politburo pledging support to meet the country’s 5.5% growth target for ‘22, with high-beta stocks outperforming.

• The Chinese CSI300 is 1.5% firmer at typing, rising above neutral levels after aforementioned reports re: the Politburo’s vows to support economic growth. Notably, underperformance in a gauge of real estate equities was broadly reversed, with the government specifically voicing support for the industry.
• The Hang Seng Tech Index was sharply bid towards the tail-end of the morning session and currently sits >10% firmer at typing. Large-caps such as Tencent, Alibaba, and JD.com contributed outsize gains to the index, building on gains made before the break.
• Focusing on the Politburo meeting, policymakers doubled down on their commitment to China’s 5.5% growth target for ‘22 through stronger “macro adjustments”, while pledging support to boost domestic consumption as well, likely again feeding into speculation for policy easing in the coming weeks.
• On the topic of Chinese consumption, several cities/regions have issued at least several hundred million yuan in coupons, vouchers, and digital “red envelopes” to residents, in an attempt to spur spending over the upcoming May Day holidays.
• U.S. e-mini equity index sit flat to 0.9% weaker at typing, with the NASDAQ leading losses. All contracts however operate clear of Thursday’s troughs, and have continued to move higher from cycle lows made on Tuesday.