The dominant macro driver overnight is the partial stabilisation in risk sentiment following last week's AI/tech-led selloff, with the US 10-year Treasury yield settling at 5.09% — a level that continues to price in a higher-for-longer Fed stance and compresses equity risk premia, particularly for long-duration growth assets. The 2-year yield edged down 3bp to 4.74%, narrowing the inversion slightly, while the 30-year held at 5.43%, signalling that the long end remains under structural supply and inflation pressure. Eurozone CPI accelerating to 3.8% YoY — the highest since 2023 — reinforces that the global inflation impulse is not confined to the US, adding complexity to any coordinated dovish pivot narrative. VIX fell 7.75% to 18.44, consistent with a relief rally rather than a durable reset in risk appetite.
For Asia-Pacific, the cross-asset picture is nuanced. USD/JPY pushing to 158.53 — up 0.46% — reflects ongoing divergence between the BoJ's tentative tightening path and Fed stickiness, sustaining pressure on Japanese import costs even as energy names (TOPIX Energy Resources +2.05%, ASX Energy +2.21%) benefit from elevated oil prices; Brent is at $109.37/bbl despite Monday's pullback. The CNY strengthened modestly to 6.6801, consistent with Beijing's managed appreciation bias following the Q3 GDP beat, while KRW firmed to 1,331.72 — reflecting improved risk sentiment after the prior week's heavy tech-driven losses in Korea. The concentrated cross-asset pressure remains in Asia tech/semiconductor supply chains, where elevated US yields, AI capex scrutiny and yen weakness create a challenging cost-of-capital environment for capital-intensive names.