Getting a carryon of this sanguine sentiment coming through from asia overnight, we had some exuberance yesterday after hitting fresh record highs. Our hopes that we could get up three chris is tax reform surprise prechristmas tax but are concerned about a partial Government Shutdown if a deal is not reached by next week. Over all we are seeing a pickup in the markets. One thing we are watching his commodities. We of course have a situation where it has been a extraordinary bull run when it comes to commodities so far this year and a lot of it has in down demand in china continuing to pick up. We are going to be looking into the question of whether that will be coming to an end, ryan, given that we are seeing the Housing Demand pull off in china cool off and china. In north korea, sanguine reaction when it comes to the equities markets in asia. You can see on the chart, we ave had the increasingly repetitive indications that the missiles have gotten more advanced incapability or nuclear capability, i should say but the markets have really chosen to shrug off this saberrattling and looking towards global earnings and growth. We are going through a little bit of a deep dive later on later on, to see how the markets react to any volatility in a geopolitics. Let us take a look at markets as they are, 30 minutes away from the opening in china and hong kong. In asia, the markets, sophie, how are things looking . Out, as you pointed things are looking sanguine and dude, perhaps dismissive after this that are not complacent the, given that for that past two months weve had spreads from hardly anything from north korea. This is the world map function, you can either we are being a primarily positive start for stocks across the region. As take a look at taiwan, singapore and malaysia. Stocks are edging higher for those markets, helping to used the regional index by. 25 . If we look at stocks in japan, they are shrugging off can learn from the north concerns from the north. Automakers out the most, the yen is also softening after under the index lowering smbc lowering their outlook. About a also a report danger to data in the new iphone at, but it is not dampening the japanese shares at all. Tourism stocks, there are greening gaining ground after a ban on tourist that has been relaxed. We are also keeping a close eye on bitcoin. You can track the move on the chart, it is flirting with a 10,000 mark, the euphoria is hitting fever pitch, it has already hit that mark on several xchanges, rocketing nearly 950 this year. Jack vogel saying a void bitcoin like the plague, avoid bitcoin like the plague. It has been traditionally the start of valley but bitcoin is taking on a lot of burden. If you look at this chart, g there is little that has been able to break gold out trumprange, not any treats or anything else. It . I incredible, isnt let us get you caught up with the first word news with Haslinda Amin in singapore. Haidi, the fed chair nominee Jerome Powell says raising rates next month is coming together. A senate panel assessing his nomination that while unemployment is low, there was no sense of an overheating economy. His comments ally him with a wing of the fomc which believes this is ok without causing worriesp the latest Global Forecast is reported to be going better than it has for the last seven years of more people finding job. However, the organization giving the forecast has warned about growth stagnating. It is calling on governments to tackle debt and do more to ensure higher living tender. Indebtedness of households and corporations has reached record levels in many countries. Particularly worrying are the high levels of continued growth of effort debt levels in china. Given the importance t of china to the World Economy. That saudi arabia and Energy Minister says he is looking forward to a robust discussion as they meet in vienna to this has prolonged output cut. Agreed, andn china they are watching, there is no word on how long and went to end them. Technical issues need to be hammered out before an exit chatterjee is agreed upon. I still have not arrived in vienna, it is too early to talk about this agreement that studies various in terms of the timeframe needed to reach better levels of inventory. The question of what is the normal level of inventory is an issue that needs to be studied and it does best with other parties. Several users have this ever did a significant security flaw in the latest mac os which allows anyone to login without a password. The issue was found in a a few monthsased ago, and it is a rare and potentially embarrassing failure for up which is in some ways regarded as hack proof. News, 24 hours a day, powered by more than 2700 journalists and analysts in whether in 120 countries. I am Haslinda Amin, this is bloomberg. Haidi thank you for that, tensions are once again on the rise in asia and governments are holding an meeting after north successful at missile. South korea has responded with a provisional missile exercise and japan has been protesting in the strongest terms. President trump saying of course simply that the u. S. Will handle it. , so was launched a little while ago from north korea. We will take care of it. In the general mattis room with us, weve had a long discussion on it. It is a situation that we will handle. Haidi alright, our reporter at large. Months of relative calm and a softer tunes from washington, what is the significance of this coming now . Guest i think the real significance of this particular missile is the fact that can said that it would more than 4000 kilometers into the sky. Which means it can easily reach the east coast of the United States, we are talking about new york and washington. The discussion about whether this muscle might have the capability of reaching a heavy Nuclear Warhead on its tip or whether it has the ability to reenter the atmosphere after leaving the atmosphere, there is a discussion there. The United States is having to come into a stage where it is really going to have to accept north korea as a Nuclear Power. North korea, we know, has done multiple nuclear test and now it is showing that it has increased technological capability with its missiles. Every analyst we speak to, almost all of them a that we have to accept it and work around it because he is not going to give up. President trump, he had a brief message saying that we will handle the situation, we will take care of it pure cap. What are his options now really . Guest he did look president ial when speaking today, the press conference took place on the missile was still in the air, as i understand. He said you know, we will deal with this, he did not come out and they that all of the options are on the Table Including the military option. He did not refer to the military option, he just referred to general mattis. The interesting thing that i also think can much of it was secretary of state reps tillerson saying that democracy is still on the table. I think the united days is taking a much more recent attitude and donald trump has really dialed back his our and fury speech which got the markets upset a few months ago. This war of words that was taking place between President Trump and him john kuhn, and people were kim jongun. 10 people are worried about a military confrontation which would have an impact on the economys in market and that is what the markets would be sanguine. Haidi we talk about the fact that the lack of volatility in the market is the inability of investors to price in a wrestling off of the scenario. Is there a chance of nuclear detonating in the bill ackman in the pacific . Guest the foreign minister during the United Nations meeting in new york, this was all happening and all of these threats were happening during the. Of fire and fury that we heard from donald trump that has calmed down it was absolutely of herbal revocation coming from north korea. I think it is interesting that every time north korea fires a missile people describe it as a provocation. But you have to look i think, at every missile to north korea that has been fired. It could be part of a longterm plan to develop the technological knowhow to be able to deliver a Nuclear Warhead to the United States and in order to do that, you have to test your missile. And that is what they continue to do. You have to test your nuclears as well, and that is what i think we need going on. North korea will soon be able to declare its goal of holding the United States to run some, it will declare itself a Nuclear Power and after that, maybe well see the new missile test coming to an end. But it will still mean that will have to and thus we will have to deal with a Nuclear Power on the block. Haidi david, thank you very much for that, the asia government reporter at large. The are seeing the significance of the latest missile test. Still ahead, the supply curve meeting, a meeting in vienna on thursday. Also, hong kong has been one of the best stock rallies in the world of this year. Could be in jeopardy . We will talk about that next. This is bloomberg. Haidi this is Bloomberg Markets asia, i am haidi lun in sydney. We are a few minutes away from open in the hong kong market, shares have been among the worlds best performing because of the ongoing rally. But there is a worry that they could be settled. Is the reasoning behind their plan to invest in hong kong stocks . Guest bear in mind they have not actually announced the lessee officially, they were speculating on the region. I think the biggest concern out there is that it is because they are worried about a large amount of inflows going into hong kong. Hong kong stocks have done a lot better than shanghai shares is your. Even if they are not worried that, it is possible they are word for is to rush for instance that there has been too much fundraising, and maybe some Fund Managers are investing in hong kong and do not know the market that will. We know that beijing usually gets uncomfortable in speculation is too heated. Haidi in terms of what we are looking at with these flows, have they been meaningful in terms of the impact on hong kong equities . Been thee inflows have major force behind the rally this year. Lastetween april 2006 and month, they put 86 billion into hong kong, compared to 3 billion of international investors. You have to remember that for chinese investors, this Program Offers a unique proposition because it allows them to ersify out right of china outside of china, given the tighter capital controls. You can imagine what it would be more motivated than global funds to buy funds to buy stocks through that program. Haidi thank you, christina. Joining us from singapore now, is the executive director and investment strategist at lgt. This is a question which i think china comes up with every time, every corner, you could have region policy messing with the rally . Guest yes, that is correct. Concerned overly about it, i think what we are seeing in china is more of the policy finetuning which has been the course that asian has been taking the last few years. Hasink the focus actually been on finetuning the credit growth in china. Has been a large increase in , something which the authorities are more concerned about and something that they have to watch. Haidi is that something that would affect individual companies as well . We have seen some of them come out saying that essentially they will not get the approval of beijing first. Is this something that investors should be concerned about . Guest i think you are absolutely right. On an individual company level, they would be more conscious. Cameras one company like you just mentioned which falls and scope, that i think the market over all is having a great Earnings Growth and a very strong reporting season, not just in china but around the world. Sentimentket globally, is very high, sustaining the rally heading into 2018. Haidi i just wanted to throw out this quick chart which goes to the point christina was making, have your flows going into hong kong equities. This is the difference essentially when it comes to that to try and. Resist that trend will see , this tech driven rally in hong kong, do you think that will carry through to next year . Guest is certainly yes, some of the innovation of the text Tech Companies are very good. The tech rally in china should continue to run. Whether it iss of going to continue being dominated by the big names like tencent, it feels like tencent has become the samsung of the kospi index, or the equivalent of the hsi. Do you think that is a theme that will lay into next year or like we have seen was among these tech eight ipos, it might create more exuberance and the sector . Guest i think it is a general trend were seeing, locally across equity markets, not just in china and tech, but also in north america, europe, Text Companies doing very well there. Clear in this sort of maturing face of the bull market and it is normal to see investors changing chasing the Growth Stocks into the bull market, so certainly. Haidi stay with us, stephan, there is plenty more to discuss. Below look at how markets are reacting to the north korea news as well as that coin flirting with 10,000. This is bloomberg. Haidi this is number of markets asia, i am haidi lun. The are talking with the executive director and executive of investment outages at lgc bank. Missile tests in north korea have ramped up and it feels like the market has a loss of sensitivity to it. Everyone is just kind of carrying on an focusing on the good headlines as a posed as opposed to the geopolitical headlines. Is it becoming hard for investors to be able to price in what the next level of threat is going to be . Guest i think that is a good point, you are absolutely right, the markets have been taking these missile test in general in stride. He thought that this morning with the japanese market opening higher actually on the news despite the fact the Missile Launch and near japan. That gives you really good indication of how little attention markets are paying to this kind of stuff. Partly it is this is the ties asian, it also reflect when we look at geopolitical risk events since world war ii, and categorize them, generallys thinking, only those that Impact Global oil supplies tend to have a meaningful impact on markets and the broader economy. So while the missile test is significant, and we have to Pay Attention to its risk, markets are quick to say, they have nothing to do with global oil supplies, so let us carry on. Haidi you mentioned global oil supplies. The have been looking a lot at opecs, maybe getting an extension of the curves. But the broader commodities year. X has been hard this do you see that kind of taking a bit of a breather as we get these suggestions of growth in china slowing . Guest i would not go down that has. I think of growth in china will remain relatively well, around that 6. 2345 , and that is actually more than enough for commodity markets. We have to bear in mind the world we are in right now, it is a synchronized increasing growth across the whole landscape. Trend,owing above europes growing above trend, japan doing ok. There is plenty of demand to go around and keep Commodity Prices were they are. Haidi yes, and i just wanted to interrupt, according has now finally talked 10,000 for the third time in bloomberg. It has been flirting with those levels and other exchanges. 10,000 i know you do not really have much of a view on this, but tell us what you think. How do you value this . [laughter] guest that is an exciting milestone. In all seriousness, i think there is a very solid consensus that the Block Chain Technology underpinning bitcoin makes a huge amount of sense and is revolutionizing the whole Financial Sector and will do is no in the next coming years at an is celebrating pace. Whether bitcoin should be 8000, 10,000, this is really hard to say from a traditional analytical viewpoint. I cannot speculate but it is certainly an exciting milestone. Haidi 10,000 for bitcoin come up into more to come. Nine 20 a. M. In hong kong 9 20 a. M. In hong not right now, and bitcoin quite 10,000 i should say, but very, very close, and this is for the first template to hit 10,000 in number pricing. Bitcoin has been flirting with that milestone. Whatever your views about bitcoin, hitting 10,000, that is really quite amazing. Hong kong markets opening, and enjoying a very calm market and it comes to. To theot of reaction missile test and north korea. Quite significant in terms of high how high a managed to go, we had reaction from the white house saying that they would manage the situation. Equities are surging ahead. As go to sophie for the china open. Yes, equities are plodding along. No way to halt to this potential 11th month gains for the regional benchmark. You can see, on the map that chinese stocks are joining the upturn along with shares in hong kong. Take a closer look at chinese equity markets and have shanghai shares up. We see what is happening in hong kong, the equity market there, we have most of this losses that we saw on tuesday getting recovered. If we look at the numbers of the seng, which just had an asset sale to another consortium, the shares are up. Another insurer is seeking investment overseas and also seeing their stocks go up. We have this International Group leading the drop along with china mobile and china gas. The are watching chinese property stocks which have been under pressure over the past week. The whole china fell over 50 at one point this week, but credit overweight oned expectations, and they believe we will see more skilled growth as more educated buyers are flocking to the market. Checking in now with some other properties rising after a got a not great from ubs an upgrade from ubs. This company up also after the attack from iceberg, after receiving 95 million to cut that. Haidi filthy, thank you for that. Sophie, thank you for that. Let u