Asian equities could trade slightly mixed as Wall Street stocks closed well off their intraday highs amid a bond sell-off and a firmer USD, with traders also cautious ahead of this week’s risk events with the ECB on the radar as well as heading into next week’s FOMC. Although some desks are eyeing inflows to Chinese stocks, especially the tech sector, strong sentiment is gaining momentum due to some reopening of hope in China and some easing from China’s Government on Chinese tech. And it is catching some smart money attention as it has started to outperform US NASDAQ.
On the macro front, the calendar is uneventful amid the Fed blackout period. Later in the session, investors will be keeping an eye on the June RBA meeting, which is set to hike the rates for the second consecutive month. Nonetheless, the pivotal question is whether or not this move will come in a 25bp or 40bp step. Also on the radar, Thursday’s ECB meeting stays in focus before Friday’s release of the US Consumer Price Index.
