Overnight Price Action
The Nikkei held flat while most Asian stocks rose. Shanghai and Shenzhen extended gains to 0.5% and the HSI maintained its 0.7% rise following the China macro data release, which largely matched consensus. Sensex rallied 0.6% and most ASEAN markets were up 0.1% to 0.4%. S&P futures also traded 0.1% higher.
The USD pared back some losses, mostly against NZD and AUD. NZDUSD fell to 0.846 and AUD towards 0.960 before stabilizing around 0.962. EUR and JPY were largely stable. Away from G10, most EM Asia FX performance was lackluster. The bright spot was another new low in USDCNY fix to 6.1372. Elsewhere, KRW touched 1060 before running into central bank resistance, USDINR opened lower marginally to 61.1 while the rest of Asia was flat.
US 10y yield has bounced off the low of 2.58% in the late NY session to trade around 2.60% in Asia. Asian rates rallied 1 to 3bps.
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Credit Suisse