Asia morning brief: Monday 9 May 2016

Good morning, the U.S. employment report out last Friday was decidedly weak in job adds at 160k vs expected 202k in non-farm payroll U.S. employment report but with supposed signs of wage inflation that subsequently drove UST yields higher to 1.79% (10yr) with TYM6 spiking to 131-06+ before plunging lower to 130-14+ closing.  U.S. equities recovered from intraday lows as hopes of Fed June meeting on hold rose on this employment report.  We should be back to a range trading whippy market swinging from perceived further Central Bank on hold or stimulus hopes to realities of global economic slowdown that doesn’t change with any Central Bank actions.  China’s trade figures released over the weekend does point to continued doldrums China trade balance .  BOJ minutes out this morning reveals a sharp split over negative rates policy that show fatigue & uncertainty even among the ranks of Central Bankers over their policy ineffectiveness BOJ meeting minutes .  For now, sell $/JPY 107.50-108 & buy 106-106.50 on tight gamma trading.  S&P500 eminis rebounded from intraday lows on Friday at 2030.5 & should be capped at 2062.5.  There’s no fireworks but grinding trading this week perhaps till Fed’s Dudley scheduled speech on Tuesday 10 May, RBNZ Weeler on Wednesday 11 May & Thursday 12 May BOE meeting decision.  Good luck!

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