Asian equities could trade under pressure following a sell-off on Wall Street amid fears of civil unrest and higher COVID cases in China. The US equities went under pressure after reports that Apple is set to lose 6 mln iPhone Pros from the unrest at its Chinese plant were an example of issues faced.
Traders will be keeping a close on the USD ahead of the US Nonfarm Payrolls and Fed Chair Powell speaking later this week before the blackout period. The Yuan hit the lows after being beaten by investors digesting the protests in China over the zero COVID policy. There has been some argument that the protests could be a net positive if the government cave in and abandon the strict rule. But if that goes out of the radar, more selling could be seen across Asian risk assets and weigh on the global economic outlook as recession fears rise and risk assets are being repriced due China’s demand shock.