Overnight Price Action
Following the S&P’s 1.4% rally overnight, futures are down just under 0.1%, but all Asian equity markets are up and Treasury yields are down. The Nikkei has rallied 1.2%, Shanghai is up 0.7%, the HSI has risen 0.3%, and Kospi is up 0.1%. The US 10yr Treasury yield fell about 0.8bps in Asian trading to 2.6533 after dropping 8.6bps in New York trading.
In contrast to equities, FX markets have been more subdued. EURUSD has risen slightly to 1.3547, AUDUSD if off its overnight highs at 0.9543, and USDJPY has dropped from an overnight high of 99.0 to 98.67. EM Asia currencies have rallied slightly, led by 0.3% moves in the THB and MYR to 31.14 and 3.164, respectively. USDCNY fixed 23pips higher to 6.14310.
Yields are lower across all Asian markets except Japan and China. JGB yields are essentially flat and Chinese rates are up about 1bps. In contrast swaps in Hong Kong and Singapore are off 2–8bps, and Korean and Malaysian yields are down 3–4bps.
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Credit Suisse