Mostly Positive Trends Post The US CPI Print

Regional Asia Pac equity market trends are mostly positive, with Hong Kong and China markets the main exceptions. US equity futures are tracking higher in the first part of Thursday trade. This follows modest gains for the S&P and Nasdaq in Wednesday trade post the US CPI print. Eminis are +0.30%, last near 4532, while Nasdaq futures are outperforming, +0.44%.

• Broader risk signals have aided the equity backdrop, with US yields -1 to -2.5bps lower across the curve today. The USD is also generally tracking softer (BBDXY -0.15%).
• In line with the firmer tone to US tech futures, Japan, Taiwan and South Korean markets are all outperforming. The Topix is 0.9%, Taiex +1.1% and Kospi +1.0% (with the Kosdaq outperforming, +1.60%). Offshore investors are modest buyers of South Korean shares (+$33mn).
• China and Hong Kong shares are bucking the broader positive trends. At the break, the HSI is down 0.22%, the CSI 300 off 0.09%. The HSI was +1% firmer in earlier trading. EV names have struggled after the EU opened an investigation into subsides provided by China for the sector.
• The HS mainland properties index is down 1.92%, as Country Garden approaches another bond vote deadline. HS banks are higher though providing some offset.
• In SEA markets are mostly firmer, with Malaysian stocks, down 0.20%, the only negative at this stage.