Overnight Price Action
Unsurprisingly, most Asian equity markets are up in the wake of the Fed shock. The Nikkei has risen 1.5%, the HSI is up 1.7%, and Southeast Asian markets are up 1.5% (Singpaore) to 4.6% (Jakarta). Equity markets in China, Taiwan, and Korea are closed for public holidays. S&P futures are up 0.1%.
In FX, G10 pairs have traded largely flat in Asia leaving EM Asia pairs to steal the show. EURUSD and AUDUSD have largely held their overnight rallies to 1.3526 and 0.9490 respective, but USDJPY has risen to 98.44 from its overnight low of 97.83. Among EM Asia FX, the INR and MYR have stood out, rallying 2.6% to 61.78, 2.3% to 3.1615 vs. the dollar respectively. USDKRW
has dropped 1.0% to 1070.58.
The JGB curve has bull flattened with 5yr yields down 1.2bps, 10s off 2.6bps, and 20s down 4.3bps. All EM Asian rates markets have rallied. Hong Kong and Singapore yields are down 10 – 15bps, Malaysian yields are off 3 – 13bps, and Indian swap rates are down as much as 27bps. After falling overnight, the US 10yr yield has traded flat in Asia at 2.6951%.
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Credit Suisse