Tech Optimism Drives Taiwan Outperformance

Regional equities are mostly higher, with HK and China markets the main exceptions. US futures are higher at this stage, led by Nasdaq futures, up 0.35%, Eminis were last near +0.10% higher (index close to 4815.). This follows fairly broad based gains in cash trading in US and EU markets on Thursday.

• Fresh tech/chip optimism following TSMC's earnings update is aiding broader sentiment in the space. The company stated it expects earnings growth to be solid this quarter and has room to raise Capex spending this year (BBG).
• The Taiex is up +2.4% at this stage. A potential return of some offshore flows (with -$4.5bn in outflows in the first part of the week) are a further source of support.
• The Kospi is up around 1% at this stage, while the Nikkei 225 is up +1.2% in Japan, the Topix +0.60%.
• Hong Kong and Mainland China indices are lagging. The HSI is off 0.20% at the break, the CSI 300 down close to 0.30%, unwinding some of yesterday's late afternoon rally. A report that brokerage Citic Securities has suspended short sales for some clients hasn't aided aggregate sentiment at this stage.
• In Australia, the ASX 200 is up around 1%, while in SEA most markets are up by less. Philippines bourse is down modestly, while Indian markets have opened up strongly, with gains of nearly 1% at this stage.