Risk-off grips Asia as treasury yields, USD retreat

Risk-off sentiment seeped back into the Asian markets this Tuesday, as the treasury yields retreated across the horizon after the recent Trump optimism-led rally, as investors now turn their attention on the economic fundamentals.

The Australian benchmark, ASX 200 emerges the biggest loser so far, after RBA’s meeting minutes revealed that the risks around inflation forecast were "broadly balanced," suggesting no further action on the cards.

The Japanese Nikkei 225 index remains under mild pressure as the greenback embarks upon a corrective mode across the board, sending the yen somewhat higher. USD/JPY drops -0.23% to 108.14 levels, off five-month highs of 108.56.

While, the CBOE Volatility Index (VIX), a fear gauge, rose +2.20%, indicating resurgence of risk-off moods into the markets.

Meanwhile, Japan’s Nikkei 225 trades marginally lower around 17,670, the Australian S&P/ASX 200 also declines -0.47% to 5,320. The Chinese equities track its Asian peers lower, with the benchmark Shanghai Composite index down -0.23%, while CSI300 index trades -0.24% lower. Hong Kong markets advance +0.34% to 22,295 levels.

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