Overnight Price Action
The overnight appreciation of the yen helped push the Nikkei down 0.8% despite the 0.8% rally on wall street overnight. S&P futures are down 0.2% in Asia. Most EM Asia equity markets have risen with Korea up 0.3%, the HSI having rallied 1.2% after being closed yesterday and SE Asia markets up 0.3% (Malaysia) – 2.1% (Philippines). Chinese markets remain closed.
The dollar has drifted a touch stronger vs. the AUD and EUR, but weakened vs. the JPY. AUDUSD is at 0.9371, off its overnight highs, EURUSD has edged down to 1.3522, and USDJPY is testing its recent lows, currently trading at 97.72. EM Asia FX is largely sideways.
US Treasuries have essentially drifted in Asian trading with the 10yr off about 0.5bps to 2.6445%. JGB yields have fallen across the curve; the 10yr is down 1.9bps and the 30yr is off 3.4bps.
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Credit Suisse