Overnight Price Action
After falling 3.2% on Monday, the Nikkei has rallied 1% today, helped in part by USDJPY rising 0.8% to 101.8 and S&P futures rising 0.4%. Most other Asian equity markets have also rallied on top of small gains yesterday. Kospi is up 0.5% and Shanghai and the Hang Seng are up 0.2%. The USD is broadly stronger with EURUSD edging lower to 1.2917 although AUDUSD recovered from early losses to bounce to 0.9648. Emerging Asia currencies are 0.1%- 0.4% weaker against the dollar with USDCNY fixing 7 pips higher to 6.1818. JGB yields rose 2-5bps in the belly of the curve with the 10yr up 5bps to 0.878%. Most other Asian yields are up slightly with Chinese rates being the main exception.
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Credit Suisse