The dominant macro driver overnight was a partial retreat in oil prices — Brent dipping toward $98/bbl — alongside a modest easing in long-dated US Treasury yields from recent multi-decade extremes, with the 10-year still holding at 5.31% and the 30-year at 5.66%. Those yield levels continue to price in a 'higher-for-longer' rate regime, reflecting resilient US growth expectations and persistent inflation risks from elevated energy costs; the VIX falling 3.29% to 15.01 suggests equity markets are choosing to focus on the yield relief rather than the still-elevated absolute rate levels. The softening in October Fed hike odds following the recent US jobs print reinforced that framing, giving risk assets room to advance across Wall Street and Europe.
For Asia-Pacific, the cross-asset read is mixed but tilted cautiously constructive. USD/JPY held at 158.14 as BoJ Governor Ueda's moderate-recovery language kept further near-term tightening expectations measured, even as JGB 10-year yields approached 3.1% — a level unseen since 1996 — compressing the rate differential with the US only marginally and keeping yen bears in control. USD/CNY was nearly flat at 6.704 with mainland markets returning from Golden Week, while KRW strengthened 0.45% against the dollar, reflecting tech-adjacent optimism. The cross-asset pressure is most concentrated in Japanese and Korean rate-sensitive equities and in energy-importing sectors across the region, given that Brent at 100.99 USD/bbl — despite Tuesday's dip — remains a material cost input for Japan, Korea, and other net importers.