Asia equities are trading moderated after the mixed performance on Wall Street where US Treasury yields climbed as Fed rhetoric reinforced the view of a nearing bond tapering. On the taper radar, for the session ahead, participants will be waiting for further comments from Fed Chair Powell and also Fed policymakers Evans, Bowman and Bostic.
On the geopolitical front, reports note that North Korea launched another missile into the East Sea. Evergrande’s theme continues dominating the trading sentiment, the PBOC spoke yesterday and said that it would ensure a healthy property market and protect home buyers’ rights.
Month/quarter-end trading could create some volatility in the coming sessions, especially in the FX space. Traders will be hunting for liquidity and best fixing pricing in the coming days. Additional volatility is expected on JPY crosses as exports and local and foreign investors might be looking to hedge and settle some of their currency exposure.
