Asian Market Update:
Asian Market Update: After a full risk on session on Wall Street yesterday, markets started to turn more cautious again as tensions between the U.S. and China flared up again after the U.S. passed a bill backing Hong Kong protesters. China threatened "countermeasures" and coupled with Turkey's rejection of a U.S. call for a ceasefire in Syria, this has put pressure on U.S. stock futures, which are heading south, while most Asian stock markets still played catch up with yesterday's buoyant mood on Wall Street. Treasury yields corrected -2.8 bp and are at 1.74%, after reaching a high of 1.7745% yesterday. JGB yields lifted 1.6 bp to -0.166% in catch up trade and as Topix and Nikkei gained 0.7% and 1.3% respectively. The Hang Seng rose 0.7% and the ASX rallied 1.3%, but mainland China bourses erased early gains and CSI 300 and Shanghai Comp are currently both down -0.2%. U.S. futures lost 0.3% so far. Brexit optimism and earnings helped markets to rally yesterday, but it seems consolidation will be the key theme for today.