JPY demand and a higher US-yield.............>

STOCKS: JPY demand and a higher US-yield environment weighed on risk assets.

- Japanese stocks were the largest regional casualty, with the 225 last trading

1.1% lower, although the index is off of its worst levels. Health care was the

only sector in the green , while energy lagged alongside lower oil prices &

exporter names fell as the JPY rallied for the first day in 5.

- China was the exception, as investors played catch up following the LNY

holiday & the PBoC resumed its open market operations after a 16-day hiatus

heading in to week long break. The CSI 300 went in to the lunch break 2.0%

higher.

- The Hang-Seng traded a little over 1.0% lower as financials and energy names

bore the brunt of the losses.

- The ASX 200 managed to post modest gains, last up 0.1% as consumer

discretionary goods led the way higher and material names rebounded following

heavy losses earlier in the week. Energy took a hit, as was the case elsewhere,

while Utilities led the way lower.

- US index futures followed suit with the mini S&P last down 11 points.