Asian Market Wrap:
Asian Market Wrap: Treasury yields are down -0.9 bp at 2.364%, JGB yields fell back -0.7 bp to -0.071%, as President Trump escalated the trade war with China by targeting telecom companies. Wall Street closed higher yesterday after stock market sentiment got a boost from reports that Trump will put off car tariffs for now as talks with Japan and the EU continue, but the U.S. President then signed an order that is expected to restrict the likes of Huawei and ZTE Corp from selling their equipment to the U.S.. Huawei was also put on a blacklist that could forbid it from doing business with American companies and require U.S. companies to obtain a special licence to sell products to the company, which if enforced strictly could halt even everyday operations at the Chinese company. Despite this latest escalation of the U.S.-Sino conflict, Hang Seng and mainland China courses managed to post modest gains, with the Hang Seng up 0.16%, the CSI 300 up 0.31%, versus losses of -0.62% and -0.73% respectively in Topix and Nikkei. The ASX also managed to climb higher as an unexpected pick up in unemployment fuelled speculation of a rate cut from the RBA and saw bond yields plunging to all time lows. U.S. futures are slightly in the red meanwhile and the front end WTI future is trading at USD 62.33 per barrel.