Higher U.S. Yields Weigh In Asia

The continuation of the recent uptick in U.S. Tsy yields, with the latest leg stemming from the release of the FOMC’s Dec meeting minutes, weighed on the major regional equities and e-mini futures during Asia-Pac dealing, after Wall St. provided a negative lead.

• Tech names continue to come under pressure, with a higher U.S. real yield environment and the increased regulatory burden for the Chinese tech sphere headlining on that front in recent days.
• Firmer than expected Caixin services PMI data did little to nothing for broader risk appetite, with Chinese government guidance to limit travel over the upcoming lunar new year period garnering more attention.
• It was the ASX 200 that spearheaded losses amongst the major regional equity indices, as it shed ~2.75%. U.S. e-minis sit 0.2-0.6% below settlement levels, with the NASDAQ 100 leading losses there.