Asian equities note 10/05/2022

Asian equities could trade sideways as global equities generally did not catch a bid during the Wall Street session. The tech sector could outperform as Nasdaq traded firmed with long-duration strengthens. For the session ahead, the US Consumer Price Index report later in the session. The major risk event of the week amid cross-asset thin liquidity and volatility as the Fed began to adjust its monetary policy. Traders have not been taking risks in the recent sessions. It is worth noting that after the last FOMC, all Fed speakers since the previous FOMC advocated for two or more 50bps rate hikes before reassessing the path of inflation and monetary policy. An outlier for this event could be a significant miss in the monthly overall and core inflation reading to shift rate-hike pricing, bring some risk on flow to risky assets like equities, bring down US Treasury Yields, especially the front-end of the curve, and push the Dollar lower.