As Asian stocks Hover Around the Water, Treasury Yields Decline – Asia Market Wrap

Treasuries rose in Asian trading, as did other major equity markets, with Japan the exception, ahead of an election that might add to selling pressure on its stock and currency.

Mainland China and Hong Kong stocks climbed alongside those in Australia and South Korea. The moves countered Japan’s fall, keeping MSCI’s Asian index flat. European and American futures fell.

Treasury rates fell for a second day as traders revised their bets on US rate reduction and the uncertainties of the forthcoming presidential election. Yields on Australian and New Zealand bonds have also fallen. The Dollar remained stable, on track for a fourth consecutive weekly rise.

A rise in Treasury yields earlier this week prompted risk-off moves throughout markets as traders reduced prospects for Fed rate cut. Next week’s economic statistics, including the monthly payrolls report, will provide additional insight, while presidential election polls show Donald Trump and Kamala Harris tied in crucial states.

The Yen remained in a range against the Dollar ahead of the weekend’s election, which could see Japan’s ruling coalition lose its majority in the lower chamber of parliament for the first time since 2009. Strategists believe that such a result would hurt the Yen and Japanese stocks.