The “Good Stuff” Outperforms, Biden-Xi Summit Odds Increase

Key News

Asian equities were mixed overnight as growth stocks outperformed the region.

Mainland China and Hong Kong had a sneakily strong day as Mainland China’s outperformance was driven by high volume, which broke the RMB 1 trillion level for the first time since the end of August. The growth factor outperformed significantly in both Mainland China and Hong Kong, led by growth sectors including technology and health care. Large, diversified China indices had a decent day as value (i.e. low to no-growth) sector weights such as financials and energy were hit as investors favored what we call the “good stuff” i.e. growth stocks that look and feel like their US equivalents.