Asian equities could trade positive amid a risk-off mood and strong inflows for emerging markets assets, and global equities with ‘bid the dip’ type of flows. Price action was also driven by weak US data, which eased US Treasuries yields before next week’s FOMC meeting.
So for Asian peers, growth stocks could be amongst the best picks from market participants with falling yield curves across the globe after recent pressure on rates differentials and outflows from risk assets amid recession fears and hawkish central banks’ forward guidance. It is also worth noting that if flows for value sectors get traction, Chinese equities might rally on the back of renewed demand for oversold sectors and regions. Traders will focus on next week’s key macro events and month-end trade ahead of the FOMC meeting.
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© 2019 High Leverage FX - All Rights Reserved.