Ninghui Liu, head of investment strategy at State Street Investment Management, said U.S. midterm election outcomes could produce divergent moves across Asian FX. If results push US Treasury yields lower and reduce policy uncertainty, Asian currencies would likely find support; renewed inf concerns would instead keep the dollar firm. Cross-country FX reactions will depend on energy import reliance, external balance positions and exposure to tech demand; the yen will be sensitive to both risk sen

At midday, Chinese government bond futures closed higher: 2-year (TS) most-active contract rose 0.02%; 5-year (TF) most-active contract rose 0.08%; 10-year (T) most-active contract rose 0.14%; 30-year (TL) most-active contract rose 0.48%.

China foreign minister Wang Yi spoke by phone on the 3rd with Philippine foreign minister Lazaro. Both sides agreed to improve and stabilize China-Philippines ties and to maintain diplomatic dialogue; they said they will work to remove internal and external interference and oppose malicious provocations that could undermine diplomatic efforts. They pledged to responsibly manage differences, stabilize the situation and seek to expand shared bilateral interests. The two exchanged views on the upcoming East Asia Cooperation leaders’ meeting in the Philippines and the subsequent APEC informal leaders’ meeting in Shenzhen.