Tech Tailwainds

Early risk positive flows saw a light extension on the back of headlines pointing to a call between U.S. Tsy Secretary Yellen and Chinese Vice Premier Liu He re: economic, bilateral and global cooperation, with Chinese media noting that the two agreed that coordination between Sino & U.S. policy is important. Meanwhile, the U.S. Tsy noted that Yellen "frankly raised issues of concern. Secretary Yellen noted that she looks forward to future discussions with Vice Premier Liu."

• The initial bid came on the back of after-hours reports revealing a mixed round of earnings & guidance from tech giant Facebook, although it was the company's announcement of a potential $50bn boost to its share buyback scheme dominated matters and has led to NASDAQ 100 outperformance in the e-mini space. This built on Monday's Tesla-driven outperformance for the tech space.
• The move moderated a little, leaving the Nikkei 225 to outperform, while the Hang Seng & CSI 300 operated around neutral levels come the lunch bell.
• Note that Monday saw a sharp reversal in the early net selling when it came to northbound Hong Kong- China Stock Connect flows, with the measure reverting to marginal positive come the bell, recording a 5th straight day of net buying in the process.