Overnight Price Action
Following a 0.2% fall in the S&P 500 overnight, futures are off 0.4%. Almost all Asian equity markets have following the US lead. The Nikkei is down 0.3%, Kospi has fallen 1.4%, the Hang Seng Index is off 1.3% and Shanghai is down 0.8%. The US 10yr Treasury yield has fallen 2.9bps in Asia to 2.744%.
EURUSD has held on to its overnight gains and is trading at 1.3449 while USDJPY has rejected the overnight run to just under 99.80 to trade down to 99.46 in Asia. AUDUSD remains weak at 0.9306 while RBNZ comments around the release of the Financial Stability Report failed to move NZDUSD. EM Asia FX pairs are broadly unchanged. USDKRW is slightly higher at 1073.08, USDMYR is flat to its open at 3.2091, as is USDINR at 63.78, while USDIDR has risen to 11644. In its first day post-Plenum, USDCNY fixed 18pips lower to 6.13420.
JGB yields are flat, but the dip in US yields has pulled most Asian yields lower by 1–3bps.
Read the full report: Market Research
Credit Suisse