EM equities fell and currencies weakened as concerns over Syria overshadowed strong US ISM overnight. US 10y edged higher to 2.87%, but remained below yesterday’s post-ISM high of 2.91%. Most Asian IRS yields are higher, notably India.
In the details, the Nikkei dropped 0.6%, the Philippines and Jakarta stock indices slid 1.9%, while the Kospi and S&P futures were flat. India’s Sensex rose above 1% on the open, partially reversing yesterday’s drop. INR and MYR underperformed. USDINR opened higher to 68.62, before retracing slightly to 68.24. USDMYR traded back above 3.30 and USDKRW above 1100.
AUD popped higher to 0.9098 on better-than-expected GDP, pulling AUDNZD to 1.165. Price action elsewhere in the G10 was more muted with EUR and JPY flat to NY closes of 1.316 and 99.63.
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Credit Suisse