Lower US Yields Boost Equity Sentiment

Most regional equity markets are tracking higher, with China the main exception. Japan equities are the standout, while Hong Kong markets are also firmer. US futures have ticked higher, albeit with overall moves fairly modest. Eminis sit near 4372, just under +0.1% higher, while Nasdaq futures are up by around 0.15% at this stage.

• US yields have fallen sharply as cash Tsy markets re-opened. Slightly dovish Fed rhetoric from Monday's session has weighed on yields, likely aiding equity sentiment, although the USD is relatively steady.
• Japan's move higher has been led by the electric appliances sector. The Nikkei 225 is up 2.30%, while the Topix is +2.0%.
• At the break, the HSI is up nearly 1.3% in Hong Kong. The tech sub index has firmed, while the HS China Enterprise index is +1.3% higher as well. Risk of property developer Country Garden going into default hasn't impacted these broader indices,
• In contrast, China mainland shares are down modestly. The CSI 300 off 0.50% at the break, with the Shanghai Composite off by a similar amount. PetroChina and Sinopec are among the weights on the index.
• The Kospi opened up strongly, amid tech export waivers to China (from the US) for Samsung and SK Hynix, but after being up over 1%, we now sit around 0.30% higher.
• In SEA, all markets are higher, although gains are generally less than 1% at this stage.