Risk assets recovered from worst levels in...>

STOCKS: Risk assets recovered from worst levels in Asia-Pacific hours, after

initially struggling on the back of the negative lead from Wall St. The

stabilisation came as U.S. President Trump noted that we will know in 3-4 weeks

if China talks will be successful, and that he feels the China talks will be

successful (although those points didn't really reveal anything that we haven't

heard before, the tone is warmer than we have seen in recent days).

- Risk-on flows accelerated further after the stronger than expected CNY fix

from the PBoC i.e. lower USD/CNY fixing, although the major regional equity

markets largely trade well short of flat levels at writing. The Hang Seng

struggled after returning from the long holiday weekend.

- Nikkei 225 -0.7%, Hang Seng -1.5%, CSI 300 -0.2%, ASX 200 -1.0%.

- U.S. equity index futures benefitted from the Trump headlines.

- S&P 500 futures +15, DJIA futures +109, NASDAQ 100 futures +51.