US Futures Higher, China Shares In HK Close To Bear Market Territory

Regional equities are once again mixed. Tech related plays are outperforming, following strong gains for US indices in Friday trade. US Futures are higher following the debt deal announcement from the weekend between Biden and McCarthy, with both leaders expressing confidence that the agreement with pass both US houses. Futures are away from earlier highs though. Eminis last around 4224, +0.25% (opening highs were just above 4243). Nasdaq futures are +0.42%.

• China markets are mixed, with the CSI 300 off by 0.60% to the break. We did see some support around the 3820 region, which is close to recent lows. Some jitters in the local government debt market are likely weighing. The Shanghai Composite is doing better, up 0.15% at this stage.
• Hong Kong markets have returned today, with the HSI off by 0.26% at the break, while the HS China Enterprise Index down 0.59%. This puts the index close to bear market territory (-19% off late January highs).
• The Topix (+0.70%) and Nikkei 225 (+0.99%) are faring better, with tech related strength spilling over. The Taiex is also higher again, +0.85%. South Korean markets are closed today.
• The ASX 200 is up nearly 1%, with firmer commodity prices in the metals space helping.
• The JCI is Indonesia has struggled, down 0.70% at this stage, lower palm oil prices not helping, while slower bank lending is likely raising question marks over the growth outlook.