Asian equities could trade positive after a corrective session as traders are eyeing potentially oversold market conditions. Some desks were chatting again about a Fed dovish pivot after US ISM Manufacturing PMI data printed weaker than expected, falling to 50.9 from 52.8. At the same time, the Employment unit tripped into contractionary territory ahead of Friday’s September US Nonfarm report. Equities and bonds went bid after the data, and price action for risk assets could support Asia-Pacific peers.
On the macro front, traders will keep a close eye on Fed’s speakers this week ahead of Friday’s job data. It is worth noting that some hedging unwinding after month-end could also add to the positive flows. Although liquidity conditions could be thin as Hong Kong and China markers are closed for the holiday.
