Positive Spillover From US Gains, Hong Kong Rally Continues

The tone for regional equities has been positive as we approach the end of the week. China remains closed until Monday, while Japan markets don't return until next Tuesday. Still, the carry over from a positive US session on Thursday, coupled with higher futures today has been a clear positive. Apple's beat (plus large share buyback) has helped push Nasdaq futures up 0.60%. Eminis were last +0.30% firmer.

• Hong Kong equities continue to rally. The HSI up a further 1.13% to the break. We had very strong gains for the Golden Dragon index in US trade (over 6%) and a closely tracked China related ETF. The HSTECH is up a further 2.0% so far today, tracking up +6% for the week.
• Attractive valuations, particularly in the tech space, is aiding sentiment, while hopes of further policy support in the aftermath of the recent Politburo meeting is another contributor.
• Technically though the HSI is now in overbought territory based off the RSI (14)
• Elsewhere, sentiment has been better in Taiwan markets, aided by the positive tech backdrop. The Taiex up around 0.70% at this stage. The Kospi is posting a more modest 0.2% gain at this stage, unable to retake the 2700 level.
• Australia's ASX 200 is +0.50% firmer. In SEA all markets are firmer today, except for the Philippines, gains are under 0.50% at this stage though.