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  • Asian equities drift lower as US Treasury yields dim cheers over US Senate’s passage of $1.9 trillion covid relief package.
  • Sino-American tussle, light calendar also confuse traders following Friday’s upbeat US jobs report.
  • Trade numbers from China, Japan flash mixed signals for early 2021.

Equities in Asia-Pacific dribble as the sustained run-up in the US Treasury yields warn bulls to rethink over recent optimism, backed US NFP and the Senate’s passage of President Joe Biden’s optimistic covid relief bill. Also contradicting traders were the recent trade numbers from China and Japan as well as Beijing’s dislike for the US interference over the Taiwan issue.

Against this backdrop, MSCI’s index of Asia-Pacific shares outside Japan drops over 1.0% whereas Japan’s Nikkei 225 reverses early gains with a 0.50% intraday loss during early Monday.

Further, Australia’s ASX 200 seems to ignore losses in China and the latest fears of the coronavirus (COVID-19) from Papua New Guinea while cheering a 60% jump in the January-February Trade Balance of the dragon nation. However, shares in China and New Zealand couldn’t ignore the recent swift in the mood as traders from the West roll-up their sleeves.

South Korea’s KOSPI and Indonesia’s IDX Composite print mild losses whereas India’s BSE Sensex likely taking positive clues from the US stimulus.

Elsewhere, US 10-year Treasury yields stay firmer around 1.584% while S&P 500 Futures drop back to the red, currently down 0.33% intraday, versus mild gains during the initial Asian session.

It’s worth mentioning that strong US employment data for Friday propelled US equities during late last week. However, the jump in the US Treasury yields keeps challenging the stock buyers.

Looking forward, American investors’ reaction to the US stimulus news will be observed in conjunction with the bond bears’ moves for near-term direction.