Asian Market Update:
Asian Market Update: Treasury yields are down -0.7 bp at 1.835% ahead of the FOMC announcement today, JGB yields climbed 1.8 bp at -0.013% overnight, Stock markets remained choppy during the Asian session, with conflicting headlines on the December 15 tariff hike in focus. The Wall Street Journal reported U.S. President trump has not yet made a decision on the next round of U.S. tariffs on imports from China while Trump adviser Navarro said he has no indication that the tariffs will be delayed. With hardly any time left before the tariffs are set to come into effect markets are nervous ahead of the FOMC announcement today. Meanwhile polls suggesting U.K. PM Johnson's lead is shrinking have rekindled concern of prolonged Brexit uncertainty and added to mix. New Zealand announced more infrastructure spending, and consumer confidence in Australia plunged in December. This left a mixed picture on stock markets. Topix and Nikkei corrected -0.3% and -0.1% respectively, but the Hang Seng rallied 0.6% and CSI 300 and Shanghai Comp also managed slight gains of 0.1% and 0.2% respectively. The ASX actually rose 0.7% as weak consumer confidence boosted expectations for further easing from the RBA. U.S. stock futures meanwhile are moving sideways ahead of the FOMC, and in FX markets USD-JPY is trading little changed at 108.74, while the AUD strengthened slightly and the NZD declined. The front end WTI future is trading at USD 58.94 per barrel.