Asian Market Wrap
Asian Market Wrap: 10-year Treasury yields fell back -1.2 bp to 1.72% after reaching a one month high yesterday. JGB yields moved up 3.2 bp to -0.204% with Asian bond markets in general under pressure as local investors caught up with developments in the U.S. yesterday. Excessive easing hopes continue to be scaled back ahead of the ECB meeting tomorrow and the Fed decision yesterday but with lingering hopes that governments will step up support for the global economy helping to underpin stock markets. The departure of U.S. national security adviser Bolton has lifted hopes that the U.S. will take a softer stance on China and North Korea and it also triggered a sell off in oil amid hopes that tensions with Iran may ease. Against that background Topix and Nikkei managed gains of 1.5% and 0.9% respectively. The Hang Seng rallied 1.7%, but mainland Cinna bourses underperformed and CSI 300 and Shanghai Comp fell back 0.45% and 0.10% despite yesterday's announcement that China will lift limits on foreign investment, which underpinned brokerages. The ASX also underperformed, as yields jumped higher, but managed a 0.11% gain and U.S. futures are up 0.1-0.2%. The front end WTI futures has recovered some of yesterday's losses and is trading at USD 57.86 per barrel, after falling to a low of 57.20 in the wake of the Bolton announcement.