Asian Market Wrap
Asian Market Wrap: 10-year Treasury yields moved up from yesterday's lows and gained 2.9 bp to reach 3.178%. 10-year JGB yields are unchanged at 0.136%, as stock markets bounced back in Asia and the MSCI Asia Pacific Index moved up from the lowest level since May 2017, led by bourses in Hong Kong and South Korea. As of 5:24GMT Topix and Nikkei were still down -0.35% and -0.34% respectively, but the Hang Seng bounced 1.67%, the CSI 300 was up 1.30%. Shanghai Comp and Shenzen Comp still moved higher at the start of the session, but are now at 0.53% and -0.06% respectively. Kospi and Kosdaq are up 1.98% and 3.06% and the ASX gained 0.20%. Sentiment remains fragile, but U.S. stock futures are also posting gains of more than 1% so it seems markets are closing a very volatile week on a less pessimistic note. With central banks on course to take out more stimulus and Fed Chairman Powell stressing last week tha the central bank is a "long way" from neutral rates there remains concerns that the Fed may tighten to much and with the IMF warning about the impact of a tightening of financing conditions markets a struggling to find a new equilibrium, with overreactions likely also a result of heightened uncertainties, that leave a wide range of possible outcomes for the world economy.