Overnight Price Action
Yesterday’s risk asset sell-off is extending. The Nikkei opened 0.7% lower after the long weekend holiday,
Chinese shares dropped 1% to 1.5%, reversing yesterday’s gains. The rest of Asia was between 0.3% to 0.7% lower, while S&P futures were down 0.2%.
US yields edged lower to 2.69% in Asia trading, but the USD continues to strengthen. AUD and NZD fell, while EUR was steady just below 1.35 and JPY traded a tight range of 98.67-98.93. INR and IDR led modest sell-off in Asian FX. USDINR opened higher to 62.81, and USDIDR rose above 11,500. USDMYR rose to a high of 3.214 before retracing to 3.206. Asian yields mostly followed the US lower.
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Credit Suisse