Asia equities see a mixed price action following a similar hint from Wall Street. Delta variant continues to drive growth revisions in the region as restrictions are being extended. Australia’s Victoria’s State Premier extended Melbourne’s lockdown for another seven days amid its COVID condition. South Korea’s daily COVID cases exceed 2,200 for the first time, hitting a record.
Traders are watching the recent high-frequency data to see if economies in the region will first experience a period of disinflation before inflationary pressures kick off again. Participants will be waiting for the US Treasury auctions and US Consumer Price Index (CPI) print on the radar for the session. A strong reading in the headline and Core could keep supporting the USD in the short term. It might put some pressure on US yields, which could change the global market flows for the weeks ahead as traders might have to review the US inflation expectations and reprice the Fed’s future actions.
