Tuesday's late rally in equities leant.......>

STOCKS: Tuesday's late rally in equities leant support to the majority of the

major Asia-Pac equity indices, although Chinese stocks underperformed in spite

of the removal of QFII & RQFII quotas N.B. we highlighted that while the move

will not trigger any notable sharp capital inflows, it does fulfil 1 of FTSE's 2

outlined criteria to boost the inclusion of A-shares via QFII & RQFII in its

relevant indices; namely "an increase in the aggregate QFII & RQFII quota

levels." The remaining criteria was the "availability of Delivery versus Payment

via QFII & RQFII." There was no move to relax restrictions for the outbound

Qualified Domestic Institutional Investor (QDII) scheme.

- Brokerages were the outperformer in China on the back of the news,

- Nikkei 225 +0.6%, Hang Seng +1.2%, CSI 300 -0.9%, ASX 200 +0.2%.

- S&P 500 futures unch., DJIA futures +112, NASDAQ 100 futures -5.