ASIA-PAC MARKET WRAP: Asia traded mixed with tailwinds from the US fading as key regional markets headed into an extended weekend

Analysis details (06:02)

Asian equity markets traded mixed as the region only partially benefitted from the momentum in US where the Nasdaq outperformed, and the S&P 500 posted fresh record highs after a dovish ECB more than offset the hot US CPI print to pressure yields, which was conducive for risk appetite. ASX 200 (+0.3%) just about kept afloat with outperformance in gold miners and tech counterbalanced by losses in the largest-weighted financials sector and with a non-committal tone heading into the extended weekend. Nikkei 225 (+0.1%) mirrored the tentative mood in the domestic currency despite reports Japan is considering lifting the COVID emergency for Tokyo on June 20th and with Toshiba shares pressured on allegations the Co. and government officials had previously colluded to lean on foreign investors to back company management in a key vote, while the KOSPI (+0.7%) was underpinned following the early trade figures which showed Exports rose 40.9% Y/Y during the first ten days of June. Hang Seng (+0.5%) and Shanghai Comp. (-0.3%) were varied with participants tentative prior to the long weekend due to the Dragon Boat Festival across Greater China on Monday and after China passed the legislation to counter foreign sanctions, while IPO newsflow was in the spotlight after China’s largest ride-hailing company Didi filed for a US listing which is expected to be the world’s largest IPO in 2021, although this failed to provide any significant boost to key stakeholders SoftBank (21.5% stake) and Tencent (6.8% stake). Finally, 10yr JGBs extended above the 152.00 level as the global bond bid persisted in the aftermath of the dovish ECB and with yields stateside remaining pressured in which both the US 10yr and 20yr yields declined to three-month lows in which the former briefly dipped beneath 1.4350.

11 Jun 2021 - 06:01- Research Sheet- Source: Newsquawk

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