Risk Appetite Wanes, Weaker HK Equities, Yen Outperformance Evident

The last block of trading has seen a more risk averse tone emerge for markets. There doesn't appear a single catalyst for the move but rather a combination of factors.

• Hong Kong equities have re-opened (after yesterday's holiday) to a negative tone, reflecting some catch up to moves seen while these markets were out. The HSI is off by nearly 2% at this stage.
• Japan equities are also weaker, while US equity futures are also being dragging lower (Eminis last near 4413, -0.25%).
• In the FX space, headlines have crossed for TRY weakening to fresh record lows of 25. USD/CNH is to fresh cyclical highs above 7.2100 as well.
• In G10 FX, only yen is firmer, with commodity FX weaker led by AUD. AUD/USD is testing is 20-day EMA around 0.6735 currently, -0.30% weaker for the session so far. AUD/JPY is off by around 0.50%, the pair last near 96.15/20, with USD/JPY back down to the 142.85/90 area.
• US yields are down a touch but not showing a huge reaction to these risk off moves.
• The firmer core yield backdrop in the past 24 hours may be a factor in driving fresh risk aversion in Asia Pac markets though.