Asian equities could see a mild risk-off trade as U.S. stocks traded higher as participants returned from the holiday weekend to a broad risk-on mood with Wall Street after last week, printing the worst weekly performance since March 2020. a decline in the S&P 500 volatility index (VIX) reduced demand for safe-haven assets. Also, it is worth noting that price action and positioning after the Quadruple Witching last Friday. Month/quarter-end trade is also playing a role in recent trade as some projects that quarter-end global stock buying could exceed USD 100bln.
On the macro front, the BoJ will release its minutes of the last meeting today whilst the JPY underperformed and printed its weakest level since 1998. Traders are keeping a close eye on the BoJ as it could trigger another macro asset reprice amid pressure on the JGBs yield target and the Yen.
