Property Support Aids HK/China Market Rebound

Regional Asia Pac equities are up strongly across most of the major markets. Hong Kong markets are the standout (+3% for the HSI), as China easing housing restrictions late yesterday. US equity futures have ticked higher as the session has progressed, albeit ranges have been fairly tight. Eminis were last near 4779, +0.10%, while Nasdaq futures were 0.16% higher.

• At the break, Hong Kong's HSI is +3% higher, slightly down from session best levels. The mainland properties sub index is up nearly 4.7%.
• China announced late yesterday easing curbs for housing markets in both Beijing and Shanghai, (see this link for more details). Elsewhere as expected the 1yr MLF rate was held steady at 2.5%, but we saw larger liquidity injection (800bn yuan). Nov activity data was mixed.
• The latest piece from the MNI China Policy team suggests a growth target of around 5% next year, with a narrower fiscal deficit compared to this year (see this link).
• The CSI 300 is up nearly 0.7% to the break, also off session highs.
• The Kospi is +0.80%, away from session bests, while the Taiex is only just above flat at this stage. Japan's Nikkei 225 has rebounded, up nearly 1.2%.
• The ASX 200 is up nearly 1%, led by the materials sector following firmer commodity prices.
• In SEA, most markets are higher, with the Thailand SET rebounding further (+1.25%).