Asian Market Update:
Asian Market Update: 10-year Treasury yields are up 2.8 bp at 1.85%, JGB yields lifted 0.2 bp to -0.085%, as risk appetite got a boost from renewed trade optimism after White House economic adviser Kudlow said talks are "coming down to the short strokes". China's commerce ministry spoke of "in-depth discussion" but added that cancelling tariffs remains an important conditions. Meanwhile China ended a nearly five-year bank on imports of U.S. poultry meat. Markets are looking ahead to U.S. retail sales. Comments from RBA and RBNZ officials meanwhile kept rate cut hopes alive and saw bonds in Australia and New Zealand outperforming, with local 10-year yields correcting -1.5 bp and -2.5 bp respectively. In stock markets Topix and Nikkei moved up 0.7% and the Hang Seng managed to stabilise and rise 0.16%, although political unrest will continue to weigh on sentiment. Mainland China bourses underperformed and CSI 300 and Shanghai Comp dropped -0.4% and -0.3% so far, despite trade headlines and news that the PBOC unexpectedly added liquidity to help banks through the tax season. The ASX by contrast rallied 0.9% on easing hopes. The yen weakened as risk appetite returned and USD-JPY moved up to 108.58. The front end WTI future meanwhile is trading around the USD 57 per barrel mark.