Tokyo's main index closes higher as Asian equities feed off optimism from US stocks in overnight trading for the most part

Nikkei 27-08

However, equities are finishing the session off the highs as the positive vibes from overnight trading is somewhat tempered by a more subdued mood in trading today. Hong Kong stocks are weighed lower amid domestic worries as the protests in the city continue.

The Hang Seng index is lower by 0.3% while the Shanghai Composite holds higher by 1.3% currently. US futures are trading weaker by 0.2% so that is also weighing a bit on sentiment as we begin European trading.

Treasury yields are at their lows for the day with 10-year yields weaker by 2.5 bps to 1.51% and that is feeding to a stronger yen with USD/JPY now at 105.68 close to session lows. Expect the risk mood to be a key factor influencing trading sentiment today once again.