S&P futures are off slightly after a lacklustre New York trading session. The Nikkei has fallen 1.3%, but the Kospi is up 0.4%,
the Hang Seng and Shanghai have both risen 0.3%, and SE Asian markets are mixed.
USDJPY rejected a move up to 100.20 and is trading at 99.90 at the time of writing while EURUSD and AUDUSD are just barely off their overnight lows at 1.3129 and 0.9124 respectively. In EM Asia FX, the KRW, SGD, and TWD have traded essentially flat to their overnight lows, but with an offered tone, while most of the region’s other currencies have weakened. USDCNY fixed 32pips higher to 6.1728.
The sell-off in US Treasuries continued in Asia with the 10yr yield rising to 3%. This has pushed yields in most emerging Asia markets up. In Hong Kong and Singapore yields are up 3 – 7bps and in Korea 2bps. In contrast, JGB yields are up only marginally. China’s 7-day repo rate rose 7bps to 3.52.
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Credit Suisse