Open Jan 21

​In Asian Equity Markets stocks in Hong Kong led losses regionally among major Asian markets on Tuesday after ratings agency Moody’s cut its rating for the city to Aa3 from Aa2 on Monday. The Hang Seng index in the embattled city fell 2.29%, with shares of life insurer AIA falling 3%. Elsewhere, the Nikkei 225 in Japan was 0.87% lower while the Topix index declined 0.54%. In South Korea, the Kospi was 0.74% lower. Shares in Australia also fell, with the S&P/ASX 200 declining 0.41%.


In Currency Markets the yen pulled ahead and the yuan fell against the dollar on Tuesday as the spread of a pneumonia-like virus in China sparked a sudden bout of risk aversion and sent Asian stocks skidding. The yuan fell against the U.S. currency in onshore and offshore trade after a Chinese health expert said the virus can pass from person to person as the fourth death from the illness was confirmed. The yen edged 0.2% higher to 109.97 per dollar on Tuesday.


In Commodities Markets oil prices eased on Tuesday as investors appeared to shrug off earlier supply concerns following a force majeure declared by Libya on two major oilfields amid a military blockade. Brent crude was trading down 30 cents, or 0.5%, at $64.90 per barrel, after rising to their highest in more than a week on Monday. U.S. West Texas Intermediate crude futures were down 14 cents, or 0.2%, at $58.40 a barrel.


In US Equity Markets activity was closed on Monday due to Martin Luther King Jr. Day.


In Bond Markets The Bank of Japan (BoJ) kept its short-term policy rate unchanged at -0.1% while keeping its 10-year Japanese government bonds yield target around 0%, largely in line with expectations.