Asian equities are trading choppy to negative as major equities on Wall Street traded negative after the N.Y. open but recovered into the afternoon. Traders will be paying attention to the Tech sector as Nasdaq took a hit after the U.S. 30-year Treasury Bond yield rose above 2.00%.
The South Korean stock index, the KOSPI, started the session, shedding 1.0%, feeling the pressure from U.S. and Chinese tech peers. Another source of tension is the report that the Japanese coast guard and South Korea Joint Chiefs of Staff have pointed to North Korea firing an unidentified projectile towards the Eastern Sea. For the session ahead, traders will be watching the liquidity conditions as volume remains light, and the Fed Minutes will be watched closely with participants looking for any extra hawkish signal. The fixed income markets, long-duration assets like tech stocks, and the USD should be monitored today with the risks of U.S. yields rising ahead of FOMC minutes and U.S. job market data. The price action for a more hawkish narrative from the Fed could force participants to hedge and dynamic balance their exposure.
