The better than expected US non-manufacturing ISM has boosted risky assets in Asia. All Asian equity markets have risen, with the Nikkei up 0.4%, the Hang Seng up 0.5% and Kospi up 0.8%. S&P futures are up just under 0.3% and the US 10yr yield has risen slightly further to 2.68%. China’s markets are still closed.AUDUSD has outperformed among G10 pairs, rallying to a high of 0.8981 in response to better than expected trade data and a rise in the NAB confidence index before easing slightly to 0.8963 at the time of writing. In contrast, EURUSD and USDJPY are virtually unchanged at 1.3525 and 101.58, respectively. All EM Asia currencies opened stronger against the USD except for the THB. The INR has outperformed, rising 0.3%, to 62.44, vs. the USD; USDIDR is lower at 12,171; and USDKRW has edged 0.2% lower, to 1076.25.
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Credit Suisse