The Global Macro Pulse

S&P futures are down 0.2%. Friday’s yen weakness has supported a 1% rise in the Nikkei, but most other Asian equity markets are down slightly on the day. The Kospi is down 0.3%, Shanghai is off 0.2%, and most Southeast Asian markets are down. A 0.1% rise in the Hang Seng and similar moves in the Malaysia and Singapore markets are the exceptions.

The dollar softed very modestly against the euro and yen but appreciated vs. EM Asia. EURUSD has edged up to 1.3363, USDJPY has dipped to 98.99, and AUDUSD is a touch lower from its open, trading at 0.9381. In contrast, USDINR rallied 1.3% to 63.3, USDMYR is up 0.7% to 3.201, USDTHB has risen 0.6% to 31.66, and USDKRW is up 0.4% to 1069.07. USDCNY fixed 35pips higher.

Yields are higher across Asia following the move in US Treasuries on Friday. Indian swaps underperformed, rising 12 – 13bps. The Hong Kong and Singapore curves steepened 11bps and 7bps respectively, Korean rates are up 6 – 9bps, and Malaysian rates are up 4 – 9bps. China’s 7-day rate fell 24bps to 3.8%, but one- and two-year swap rates are up 7bps.