Asian Market Wrap:
Asian Market Wrap: 10-year JGB yields spiked 3.2 bp to -0.185% and 10-year rates in Australia and New Zealand jumped more than 10 bp, amid optimism on U.S.-Sino trade talks and on the Brexit front. U.S. President Trump sounded optimistic after the first day of talks and discussions will continue today. Markets also bought into positive noise on the Brexit front after the U.K. and Ireland said yesterday they could see a "pathway" to a possible deal. Hong Kong stocks got a lift from discussions among protesters on a scale back of vandalism in the planned protests for the weekend. The risk of course is that market optimism will once again be disappointed and while Asian bonds sold off, Treasuries already steadied overnight, with the 10-year unchanged on the day, after jumping to 1.668% yesterday. Wall Street closed broadly higher and Asian markets also rallied, with Topix and Nikkei up 0.9% and 1.2% respectively and CSI 300 and Shanghai Comp gaining 0.8% and 0.7%. The Hang Seng jumped nearly 2.5% amid hopes of a de-escalation in the protests and the ASX lifted 0.9%. U.S. futures are up 0.4-0.6% and USD-JPY is trading at 108.00. The front end WTI future meanwhile lifted to USD 54.13, as trade hopes lift sentiment.