SOUTH KOREA: Bond Futures Drop for Fourth Day. 

ACGBs (YM +6.0 & XM +7.0) are stronger on a data-light session.

• There is no cash US tsy trading in the Asia-Pac session today with Japan closed for the Emperor’s Birthday holiday.  TYH5 is dealing -0-05+ compared to closing levels at 109-17.
• Cash ACGBs are 6-7bps richer.
• Swap rates are 6-7bps lower.
• The bills strip has bull-flattened, with pricing flat to +7.
• RBA-dated OIS pricing is flat to 6bps softer across 2025 meetings today but remains 1-3bps firmer than last Tuesday’s pre-RBA levels. A cumulative 48bps of easing priced by year-end (based on an effective cash rate of 4.09%).
• The AOFM sold A$300mn of the Jun-34 green bond, with a cover ratio of 5.38x.
• QTC launches a tap of the 5% Jul-37 bond. Orders will be accepted via the JLM's on either an outright or EFP basis only. 

Asian equities fell, tracking Wall Street’s worst session of the year amid weak US economic data and rising inflation expectations and concerns following new bat coronavirus study in China.  The USD is trading lower, while the euro outperformed after Germany’s conservative leader signaled plans for swift government formation. Japan is out today for Emperors Day, with US tsys trading also closed.

• China & Hong Kong: Mainland and Hong Kong stocks declined after the U.S. proposed fees on Chinese commercial ships, adding to trade tensions. Diagnostic kit and vaccine stocks gained after Chinese researchers reported discovering a new coronavirus in bats. The HSI is -0.25%, while the CSI 300 is -0.20%.
• South Korea's KOSPI dropped 0.80% as auto and chip stocks led declines. Samsung Electronics fell 1.37%, SK hynix lost 3.34%, and Hyundai Motor slipped 0.49%. However, POSCO Holdings rose 0.18%, and HMM surged 13.82%. Taiwan's TAIEX is 1% lower as global semiconductor stocks struggle, TSMC is down 1.90%, following the SOX dropping 3.28% on Friday.
• Australia's ASX 200 fell 0.1%, weighed down by mining and tech stocks. Wisetech Global plummeted as much as 23% after director resignations over disagreements with its founder. New Zealand's The NZX 50 dropped 1.7%, with Summerset Group dropping 6.5%. 

EUR continues to climb, the pair last near 1.0515/20. DAX futures up around 1%, as markets digest the German election results.
EUR/JPY also higher, back close to 157, with yen underperforming broader USD weakness.

Some EUR/USD resistance levels to be mindful of.

RES 4: 1.0630 High Dec 6
RES 3: 1.0594 Dec 9 ‘24
RES 2: 1.0533 High Jan 27 and a reversal trigger

(we already above the earlier Feb highs (1.0514))