Asia equities could trade higher as traders are looking for risk exposure as the US stock market closed at session highs, with a duration bias as the recent bond sell-off lost some momentum. Cyclical and Technical stocks could outperform as on Wall Street, the tech-heavy Nasdaq100 enters a technical bull market. It is also worth noting that risk-taking could tilt towards China’s equities as China’s NDRC Deputy Director General expressed optimism for the global growth situation this year, stating that China’s potential growth rate is the possible growth rate of the whole world.
Participants are fading concerns about the banking sector, which has been helping risk assets and related flows during month-end/quarter-end remain at the forefront of traders’ minds. Due to technical factors and liquidity, the USD and the US Bonds could work as a proxy for short-term price action.
