At a glance:

Asia trade was subdued after Tuesday’s US volatility, with little fresh direction.
Regional equities tracked Wall Street lower, but selling pressure eased.
Japanese government bonds recovered modestly, helping stabilise sentiment.
News flow was light, with policy signals largely incremental rather than market-moving.
FX moves were contained, though CHF/JPY pushed to a fresh record high above 200.

After a volatile US session on Tuesday, markets across the Asia-Pacific region experienced relatively quiet and directionless trade, with limited fresh catalysts to drive price action. Regional equities opened under pressure in response to Wall Street’s sharp sell-off, but the mood stabilised as the session progressed.

A key calming factor was a modest recovery in Japanese Government Bonds. After heavy selling earlier in the week pushed long-end yields sharply higher, JGBs managed to claw back some lost ground, helping to ease fears of further spillovers into global rates markets. The pullback in yields was viewed as a stabilising influence for regional assets, particularly given Japan’s outsized role in global capital flows and carry trade dynamics.

News flow was thin and largely non-market-moving. In the US, Donald Trump signed an executive order outlining steps to limit large institutional investors from buying single-family homes. The order sets out a consultation process, with the Treasury tasked with defining key terms within a month and federal agencies to explore possible restrictions within 60 days. The move had been telegraphed previously and drew little immediate market reaction.

In New Zealand, Christopher Luxon formally called a national election for 7 November, framing the contest around securing a second term and accelerating economic growth. The announcement provided political certainty but had no discernible impact on markets.

In China, the People’s Bank of China again leaned against rapid yuan appreciation, setting the daily reference rate at 7.0014 per dollar despite broad US dollar softness. The fixing, well weaker (for CNY) than market estimates, reinforced the view that authorities are managing the pace of gains rather than attempting to reverse the trend.

South Korea’s president also reiterated that FX markets are driven by supply and demand, noting limited scope for direct stabilisation measures and flagging expectations for the won to strengthen toward the 1,400 level in coming months.

Elsewhere, attention briefly turned to news that Air Force One, carrying Trump to Davos, returned to Joint Base Andrews due to a minor electrical issue, with the White House saying travel would continue on a replacement aircraft.

In FX, CHF/JPY extended its relentless climb, printing a fresh record above 200, a reminder that structural safe-haven flows remain a dominant theme beneath an otherwise quiet session.

Gold continued to shine, above US$4860 and also to a record high.

Asia-Pac
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