Tech Sensitive Indices Dominate The Rebound

All the major Asia Pac indices are higher, with tech sensitive bourses leading the rebound, in line with overnight moves and the sharp pullback in US yields post the CPI print. US futures have had a relatively quiet session. S&P and Nasdaq futures have largely moved sideways, albeit with a slight downside bias.

• The HSI is among the best performers, up around 5.5% at this stage. The tech sub-index is +7.80% firmer, although we are away from opening highs by around 2.25%. Note overnight the China Dragon Index rose 7.50%, snapping a 3-day losing streak.
• For mainland shares, the CSI 300 last printed +2.10%, the Shanghai Composite Index +1.50%. The underlying property sub-index is +4.19%. There is hope that current lockdown measures will be less impactful on economic activity, although covid case numbers continue to climb, now above 10k. The health authorities continue to emphasize that optimizing covid control policies is not a loosening in restrictions.
• The other focus point will be Monday's meeting between President Xi and US President Biden, particularly from a tech outlook perspective (if this sector is raised).
• The Taiex is +3.5%, with TSMC leading the way. The Nikkei 225 is +2.75%. Kospi gains are +3.15%, with offshore investors adding +$375.8mn to local shares.
• South East Asian markets are also higher, but gains are under 2%.