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Asian equity markets continue to show a strong start to the week, with the exception of Thailand, while South Korea is surging after a short-selling ban. Korea's short-selling ban appears to be an attempt by politicians to keep the retail market alive ahead of the election, but it takes away the opportunity to realize MSCI Korea's MSCI upgrade from emerging to developed markets.

The yuan and the Asian dollar zone index both rose against the US dollar as doubts about continued US interest rate hikes intensify. Hong Kong and mainland China also posted strong share gains on heavy trading volume led by growth companies as investors focused on "good" growth sectors such as internet, electric vehicle sector, clean tech, technology and healthcare. At the same time, energy fell in both Hong Kong and mainland China.

Foreign investors bought $725 million worth of Chinese stocks through the northern link after active purchases of Shenzhen shares, while Shanghai shares were the subject of net selling. Why? Shanghai is home to state-owned enterprises that represent historic "old" sectors of the economy, while Shenzhen includes private companies that mainly operate in growth or "new" sectors of the economy.

The most active foreign purchases overnight included electric vehicle battery maker CATL, solar energy companies LONGi Green Energy and Sungrow Power Supply, and pharmaceutical contract research organization Wuxi AppTec. There was talk of how low the current level of foreign investor investment in China as a whole is, a reversal of which could provide additional support for growth.

Who do you think is ready for a picture of Biden and Xi shaking hands? I don't think anyone is ready. The Shenzhen index broke our "line in the sand" at 1900 after closing at 1914 overnight. Shanghai, meanwhile, is approaching the 3100 level at 3058.

The most actively traded Hong Kong stocks by value overnight were Tencent, which rose 3.3%, Meituan, up 5.59% and Alibaba, up 2.41%. Meanwhile, the Hang Seng Tech Index closed above its 200-day moving average.

The annual Alibaba Singles Day (11/11) event, which is a kind of Super Bowl of shopping, will officially take place on Saturday, although pre-sales have been going on since last month. E-commerce revenues for the third quarter, the results of which will begin to be reported next week, may be low compared to the same period a year earlier. Therefore, it is important to remember that the 11/11 Sales Festivals typically drive fourth quarter sales growth across platforms, leading to continued fourth quarter profit growth, similar to Black Friday and Christmas for US e-commerce platforms.

Stockbrokers had a strong day as the China Securities Commission (CRSC), the equivalent of the SEC in China, urged companies in the industry to continue to expand and improve efficiency through mergers and acquisitions, likely spotting Schwab's purchase of TD Ameritrade in the U.S.

Real estate posted strong gains in mainland China and Hong Kong as state-owned construction company Wanke called a bondholders' meeting after its bond prices plummeted last week.

The Ministry of Finance (MoF) is pushing for further fiscal measures to support the economy in the wake of the Central Conference on Financial Affairs (CFWC).

Chinese Vice Premier He Lifeng will meet with Secretary of State Janet Yellen in Washington this week. Meanwhile, Premier Li opened the China International Import Expo, which was attended by many foreign brands active in China.

There have been rumors of low foreign direct investment in China. However, as our trader friend Dave says, "If the market doesn't care, you don't care. "

The Hang Seng and Hang Seng Tech indexes overnight rose 1.71% and 4.09%, respectively, on volume up 27% from Friday to 103% of the yearly average. 404 stocks showed an increase while 92 showed a decrease.

The Shanghai, Shenzhen and STAR Board rose 0.91 percent, 2.13 percent and 1.69 percent, respectively, with trading volume up 32 percent from Friday to 122 percent of the yearly average. 4,402 stocks saw gains while 511 declined in value. The growth factor and small-cap stocks outperformed the value factor and large-cap stocks. The best performing sectors were communications (+4.63%), real estate (+3.98%) and technology (+3.57%). While utilities (-0.85%) and energy (-1.80%) showed declines. The most successful subsectors were cultural and media industries, internet and securities. Meanwhile, oil and gas, coal and precious metals performed the worst. Investment from abroad was high as foreign investors bought a net $725 million worth of Chinese stocks, including BYD, the largest buy, BOE, CATL, LONGi Green Energy, Sungrow and Wuxi AppTec. The yuan and the Asian dollar area index strengthened against the US dollar. The 10-year bond was little changed, copper declined and steel rose.