Overnight Price Action
Concerns over geopolitical risk in Syria sparked a sharp sell-off in Asian equities. The Nikkei dropped 2.4%, the Philippines shed 5.4%, the Hang Seng and Sensex lost more than 1%. Brent has popped 1.5% higher in Asian hours, US 10y yields are marginally lower to 2.70%, and S&P futures are 0.2% higher.
EM FX responses were more subdued aside from the INR, which weakened to another record low of 67.13 on the open. Rising oil prices only add to investors’ concern on India’s trade and funding position. The rest of the region traded more mixed with THB and PHP down marginally, but SGD and TWD were up. The USD advanced against AUD and NZD, but was broadly stable around NY closes against EUR, JPY and GBP. EURUSD is trading at 1.338, USDJPY at 96.95, and AUDUSD at 0.892.
Read the full report: Market Research
Credit Suisse