The recovery in Chinese stocks.........>

CHINA STOCKS: The recovery in Chinese stocks continues today with both the

CSI300 and the Hang Seng adding ~0.5%. A break above the Nov 2 high at 3290.25

in the CSI300 would mark a bullish break, likely confirming a bottoming out

pattern. The HSI is testing its 55-dma which has capped rally efforts over the

multi-month downtrend.

- Stocks are shrugging off the hawkish comments made by US VP Pence on Sunday as

well as a lack of consensus at the APEC summit suggesting that negative

headlines are increasingly being priced in. 

- That said, the Chinxt is under pressure after recent outperformance, with the

index down ~1.3% on the day as it struggles to overcome the 1400 level.