- A decline in technology companies contributed to a drop in an Asian equity index, as investors evaluated disappointing manufacturing data against inflation fears from OPEC+'s proposal to limit oil supply. The Australian currency plummeted when the RBA suspended rate hikes.
- A regional stock index was down roughly 0.2%, with considerable weakness in Hong Kong and Alibaba being one of the main drivers to the drop there. Following a volatile session on Wall Street, contracts for US indices dropped marginally.
- Following the RBA's decision to suspend its most aggressive tightening cycle since 1989, Australian shares rose somewhat and the country's currency fell, however more tightening may be required. Government bond rates continued to fall, with both the 3-yr and 10-yr maturities falling by more than 6 bps.
- A barometer of dollar strength was up after falling 0.4% on Monday, and Treasuries were steady after being at the centre of the action during US hours. 2-yr rates reversed gains of up to 11 bps on Monday, finishing 6 bps lower after a measure of US industrial activity dropped more than expected. This occurred after data earlier in the day showed that China's manufacturing activity had unexpectedly slowed.
- While such data reduces inflationary fears despite predicted energy price increases as a result of the cartel's output cut, it also demonstrates that the darkening economic outlook is spreading to Asia
