the a sx -- asx trading the highest since the start of january.pect a pretty strong session today given the futures are indicating an upside of .6% on the back of the s&p rebounding. investors still continuing to look at the inflation outlook as well as what the fed will do. turning to china, beijing says signs of a security agreement -- australian voters are turning their backs ahead of the upcoming federal election. the australian government -- we are joined. we did see this packed -- pact in china being signed. ben: this is the worst case scenario for australia and the u.s. they have worked for years to avoid the chinese government to get a security foothold in the pacific. now that has come to pass. the big factor on both sides is the spike is still being signed. we do not know what is in the agreement. in the original draft that was leaked, what was in the agreement was that the chinese government would have the request of the solomon islands sending troops to help with domestic unrest. this comes after some businesses were burned in the solo

we are on the cusp of the asx erasing its losses for the year. we continue to see that robust action price coming through from energy and materials in particular. looking like we are setting up for a gain of just over .5%. and watching the aussie dollar, it looks like support is being found at 73 u.s. cents. and also looking for higher momentum swings when it comes to the kiwi dollar as well which is nearing overflow territory. asx is firmly focused on dollar-yen at the moment. yen falling for a 14 today. that 1.30 level against the dollar may come today. and today we could potentially see intervention. what ford does that take? we get more -- what form does that take? potentially we get more job earnings and we hear a discussion on coordination between the u.s. and japan as well. take a look at this chart. this was when japan last intervened to combat weakness during the financial crisis. that widening u.s. yield over japan will continue to drive those losses. the kind of interventions available can be quite politically sensitive when it comes t

little bit of weakness in australia, the asx is off to .3%.ing in the market, the market was closed the last three games. most sectors are weaker around the material space. shery: energy down with the asx, not surprising that we did have that pressure on oil prices, although it's rebounding a little bit. that's it from daybreak: asia. market coverage continues as we look ahead to the start of trade and hong kong. standby. this is bloomberg. ♪ ♪ david: good morning from hong kong where it is 9 a.m. and the city. 9:00 in taipei and shanghai. i could go on. in any case, welcome to the china open crude i david in glass. let's get to top stories today. surmounting on china's leaders to put the economy before ideology. that is a covid lockdown taking the markets. the currency of yuan paired its

we are looking for a bounce back from the two days of losses for the asx 200, up just a quarter of 1%. the 10-year yield is holding steady, just over 2.8%. in new zealand, a flat start to trading this morning. there are some indications that the dollar-yen signals are suggesting less turbulent times ahead. we are looking at the three-month volatility, it has come off its recent highs. the rate differential may have peaked in the near term, according to some analysts. so perhaps we will see some slightly less wild swings for the yen. shery: yes, but the big story is the rate differential, how traders are reflecting that in the markets. this as we continue to see monetary policy being the focus, the federal reserve trying to get to more normal monetary conditions. but, the problem right now is what is normal? right? what is the neutral rate? the destination right now is pretty uncertain. it neither restricts or spurs economic growth. that increases the possibility that the fed will make a mistake. bullard referred to where the rate sits as a phantom menace. many factors could influence

asx down 1.5%. materials particularly beaten up. but the aussie dollar, 72.04.here's a quick check of the lid is business flash headlines. foxconn is keeping its iphone city campus in central china open, even with the covid related lockdown in the area. the plant is a major assembler of iphones for apple and is located in the airport economy zone. the area is now under lockdown indefinitely. the workers for key businesses can still commute with permits. two of china's steak bans are reportedly cutting ceilings for deposit rates monday as authorities urgent lenders to support smaller companies with lower financing costs. bank of china will lower -- exc use me. its two to three year deposit rates by 10 -- paul, i will hand it over to you. paul: all right. it is not clear how state banks are going to follow suit. still to come we will talk more about the french election, emmanuel macron winning another term as president. we will discuss what his defeat of far right leader marine le pen means for the future of the eu. >> this day of the 24th of april, 2022, a majori

he haidi: that pain when it comes to the open extending to australia, this is the asx, extending yesterday'sa third straight day. one quarter of 1%. everything trading in the red. third day of losses. the underlying measures are exceeding the target adding to calls for a supersized hike from the rba. watching some properties given we had residential properties falling to the lowest in a decade, corelogic saying they are likely to fall further. seeing a recovery for the kiwi dollar after the qe lost overnight. the strength of the u.s. dollar continuing to push through. take a look at u.s. treasury. two year yields are seeing a move as well. futures extending the rally. we saw at the open extreme bearishness. s&p futures are up 1/10 of 1%. $102, lots of concerns about demand with signs the covid restrictions on lockdowns could be further extended across china given we are seeing the cases start to building beijing. let's bring our guest. the tensions, conflict. what is the best way to balance the portfolio given the breath of uncertainty out there? guest: it's a topical and great question, inv

asx 200 unchanged but kiwi stocks losing ground for a fifth consecutive session, the laura -- the longestince january and headed toward the rate decision which would lead to another rate rise according to economists around 25 basis points. we have already seen a 75 basis point hike since october of 2021. paul: let's look at the kiwi dollar. 68.2 against the greenback. one of the worst-performing currencies in the g10 at the moment and the rbnz decision wednesday in sharp focus, expected to lift rates for the fourth time in a row and take the cash rate in new zealand to 1.25%. the weaker yen continuing to be a theme. near a two decade low. it has only touched this level a couple times in the past 20 years. the korean won continuing to appreciate. aussie dollar appreciating against the greenback dollar. shery: the u.s. is ordering government employees to leave shanghai, this comes from the state department announcing the departure of non-emergency u.s. government employees and all family members from the consulate general in the city. we saw tension between washington and beijing with the u

the asx is trading in the negative. the dollar yen is pretty stable, but for how long?ting a good tone for earnings, you have the renminbi continuing to climb, we saw that break out. sophia, why is there such a brutal selloff? >> has a lot to do with the covid zero policy. what is the endgame, and how much pain are policymakers going to stick? we don't see an appetite to change course. if you look at shanghai, a lot of people have been locked down for more than 40 days. at the question on people's minds. when you look at earnings, reflected in currency, we kissed since late 2020. a weaker currency would help that. they rely on consumption. haslinda: we have one hedge fund cutting china to zero. is there a sense? >> it a mainland based hedge fund, and china you can't really short stocks. when hedge funds have a negative view on the market the only thing they can do is pair exposure. this person is saying this will be a worse year since 2008, what is happening is people are reducing exposure but have nowhere else to go. alternatives are not attractive. slowing property ma

losses, unchanged at this point, but still close to the record high that we see when it comes to the asx year yield is holding steady. a big day for markets. bond investors will be passing rba -- parsing rba statements. it's pretty much a coin toss when it comes to the may rate hike probability at this point. new zealand, with the upside of about 0.25%. the kiwi dollar just under $.70 u.s. the aussie dollar had been the best performer in the g10 space. we may be running into a little bit of resistance before the rba meeting, shery. shery: our next guest says he is holding a more moderate conviction in markets. with us now is kerry craig, global market strategist at j.p. morgan asset management strategist -- asset management. you are still not expecting an outright recession. why? kerry: good morning. there is not much in the economy to signal we would see that kind of weakness that would lead to recession. we still have very strong household balance sheets, strong corporate balance sheet, and we still see decent momentum around the world. we still have parts of the world that are reopeni

but we are seeing the sx lower by .25% -- asx lower by 2.5%, it deputy governor of the rmb a saying itflation down to 2%, adding fuel to the fire when it comes to rate hike expectations, one chief economist shifting his call for his first move and the tightening cycle to begin in june. the 10-year yield above 2.9%, it has left out a little bit for pressure we saw in the previous session, where we really saw that massive jump in yields begin along with the global bond selloff that's continues. look at the u.s. 10-year at two point 58% as well as s&p 500 futures looking negative at this point. we have seen a rebound in crude, when it comes to the asian session. we did see a pullback in wti after the release of the iea reserves, but crude is off morning session highs still. shery: our next guest says the backdrop with higher inflation and slower growth is becoming more challenging for asian markets. kiranjeet kaur is aberdeen asia equities senior director. good to have you backward what we focus on when the environment becomes more challenging and perhaps returns won't be as high as befor

we are seeing the asx bouncing back from two days of decline.coming under renewed pressure. seeing a bit of a fall in the overnight session, but now we have resumed that moved to 2.96 percent. when it comes to new zealand, up early flat with the kiwi dollar as well as the aussie dollar seeing weakness on the count of strength we are seeing on the u.s. dollar overnight. when you look at that correlation between commodities and stocks, that relationship is sitting at a decade high as we see commodity prices surge and supporting both asset classes so far this year. taking a look at the u.s. 10 year yield at 2.6% as we see this reignition of this move across the yield curve after a couple of days of resteepening. crude prices continuing to push ir as we look for more developments when it comes to the energy sanctions situation for russia. our next guest says while concerns around stagflation, commodities should protect against risk. let's bring in the equity strategist at goldman sachs. it can be difficult to get exposure when it comes to energy in