- Asian equities fail to extend previous day’s run-up as US Treasury yields rise further towards the yearly top.
- Fears of a US hedge fund default, rise in Australia’s covid transmission and geopolitical fears weigh on the sentiment.
- Light calendar, month-end positioning and pre-NFP mood probe traders.
Asian shares dwindle during early Tuesday as traders fear default of a major US hedge fund, Archegos Capital, as well as spillover while the US Treasury yields are already testing the equity bulls. Against this backdrop, MSCI’s index of Asia -Pacific shares outside Japan gains 0.64% whereas Japan’s Nikkei 225 struggles for a clear direction around 29,400 by the press time.
Australia’s ASX 200 drops 0.30% amid increasing covid cases in Brisbane but New Zealand’s NZX 50 seems to cheer downbeat housing permits for March. Further, stocks in China and Hong Kong shrug off the West versus Beijing story while consolidating the latest losses.
South Korea’s KOSPI also benefits from broad vaccine optimism, mainly taking clues from the US and the UK, while Indonesia’s IDX Composite drops on geopolitical and covid troubles at home. Moving on, India’s BSE Sensex begins the trading week on a positive side despite a jump in the coronavirus (COVID-19) figures in the key Indian states.
US 10-year Treasury yield rises 2.3 basis points to 1.74% whereas S&P 500 Futures jostle between gains and losses amid mixed clues.
Talking about major data, Japan’s upbeat Retail Sales and employment data for February couldn’t impress Tokyo traders amid chatters of US-Japan talks over Taiwan.
Looking forward, the month-end, as well as the quarter-end, positioning could play their roles amid a light calendar and mostly old risk catalysts. Though, bond moves will be the key to follow ahead of Friday’s US NFP.
Read: S&P 500 Futures reverses early Asia gains amid mixed clues, strong US Treasury yields