Asian equities indices are testing key support ahead of next week’s US FOMC meeting. What is the outlook for the Hang Seng Index, Kospi, and Topix and what are the key levels to watch?
The Hang Seng Index’s rebound early last week ran out of steam toward the end of the week, suggesting that a meaningful upward momentum is lacking in Hong Kong/China equities despite the support/stimulus measures in recent months.
Asian equities indices are holding above vital support after after an apparent dovish shift by Fed officials. What is the outlook for the Hang Seng Index, Kospi, and Topix and what are the key levels to watch?
Slowing growth in the US services sector and a significantly lower-than-expected US private payroll data paved the way for some cooling in the US Treasury yields rally.
US Treasury yields continued with their ascent overnight, with the US 10-year yields at 4.8%. Aside, the VIX is at its four-month high, hovering just below its key 20 level.
Another push higher in Treasury yields kept risk sentiments broadly in check, as the US 10-year yields surged to touch another new high since 2007.
The softening in US August core PCE inflation failed to drive a sustained rebound in Wall Street last Friday. China and Hong Kong markets are closed today.
A slight breather in the Treasury yields rally allowed Wall Street to turn in a positive session overnight, while VIX retraced for the second straight day.
Wall Street managed to stabilise overnight from its recent sell-off, despite another climb in Treasury yields and a pull-ahead in the US dollar.
Elevated Treasury yields, higher oil prices and a gridlock in the US government funding bill serve as prevailing risks for markets to digest.