Broad Based Losses Amid Continued US Yield Surge

Regional Asia Pac equities are once again under pressure. Losses are evident across the board, as the relentless rise in US yields continues to unsettle broader risk appetite. Japan markets and returning South Korean markets are among the weakest performers.

• US equity futures have also exhibited further weaker (following losses in Tuesday cash trade). Eminis are off by 0.40%, last near 4248, and close to the simple 200-day MA (we are already sub the 200-day EMA). Nasdaq futures are down by a similar amount. Strong US yield gains have continued in Asia Pac in Wednesday trade to date The 10yr yield making a fresh high of 4.85% (+5bps for the session). The higher for longer theme continues to see US yields adjust.
• Japan yields have risen, the 10yr swap rate above 1.0%, although yen has lost a little ground. Japan benchmark indices are down close to 2% at this stage.
• South Korean markets have returned (shut since last Thursday) and played catch up to the downside. The Kospi is off over 2%, the Kosdaq -3.5%. Offshore investors have sold -$425.3mn of local stocks so far.
• Hong Kong stocks remain on the backfoot, the HSI down over 1%. The ASX 200 is down around 1%.
• In SEA, Indonesian and Singapore indices are the weakest, down over 1% at this stage.