Overnight Price Action
Asian stocks opened lower but has reversed somewhat. Most ASEAN markets were net higher on the day, led by gains in Thailand and Singapore (0.3%). Heng Seng and SHComp were also marginally higher (0.2%), while the Nikkei was down 0.4%, and S&P futures were flat.
The USD firmed across the board, despite the US 10y yield falling to a low of 2.64% overnight and stabilizing around 2.65% during Asia hours. NZDUSD fell to 0.82 and AUDNZD bounced higher to 1.139 on a weak NZ trade deficit. EUR has inched lower to 1.347, while USDJPY is still rangebound.
In EM, the USD rallied most against MYR and KRW. USDMYR rose 0.7% to 3.23, and USDKRW rose 0.5% to 1078. USDINR also opened higher, albeit only marginally to 62.84.
In rates, China 7 day repo rate fixing eased to 3.84% after rising to a month high of 4.43% yesterday.
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Credit Suisse