Asian equities slump contradicts with the optimism of the markets today

Nikkei -0.7%
Shanghai Composite -0.4%
Hang Seng -1.6%

At the same time, we see a 0.5% rise in US futures, while yields on 10-Y bonds are also up today by 1.4 basis points to 2.415%. So, despite the losses in Asia for the time being, this does not give a real impression of building optimism on the markets before the start of European trade.

Excluding losses today is the Hang Seng index, which is 1.6% down for the moment, but that's because he catches up as the market as was closed yesterday.

One of the recurring themes in the markets last year was the ability of risky assets to recover rapidly and heavily after every barrier from US-Chinese rhetoric. Now this topic will be tested again, but this time, investors will have to understand the consequences of the stagnation of trade to slow down the global economy.

So that's something we should be careful about. Greed vs. Fear - The Endless Battle.

Notch positivism for equities in Asia and the risk in general is that the sale seems somewhat stretched, at least if we look at the 14-day RSI.

But I guess the big question will be whether investors will appreciate EM and Asian shares as cheap, despite last week's cuts? At some point, we expect a good rise, but given the continuing trade strain, it is likely that it will be hard for the stocks to emerge in the next two weeks.

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