[MARKET ANALYSIS] Asia-Pac stocks are mostly lower as yields climb on hawkish reaction to speculation of Warsh nomination for Fed Chair

APAC Stocks: Negative

• Asia-Pac stocks are pressured heading into month-end, as the initial Apple-related euphoria following record iPhone sales, was eventually clouded as yields gained and the dollar strengthened on reports that the Trump administration is preparing for the nomination of Kevin Warsh for the Fed Chair role.

ASX 200: -0.6%

• Index was dragged lower by underperformance in miners and resources stocks as metal prices retreated.

Nikkei 225: -0.4%

• Swung between gains and losses following a slew of data releases, including softer-than-expected Tokyo CPI, better-than-expected Industrial Production and weak Retail Sales, but with the downside in the index stemmed by a weaker currency.

Hang Seng & Shanghai Comp: Hang Seng -1.8% / Shanghai Comp -1.7%

• Chinese markets underperform with little fresh drivers and indirect pressure from US President Trump, who warned of dangers for the UK and Canada regarding getting into business with China, while CK Hutchison shares were hit after reports that the Panama Supreme Court ruled the Co.'s ports contract is unconstitutional.

US Equity Futures: Lower

• Gradually declined with headwinds seen following speculation of potential nomination of Kevin Warsh for the Fed Chair, who is seen as less dovish than other candidates.

European Equity Futures +0.7%

• Indicate a positive cash market open with Euro Stoxx 50 futures up 0.7% after the cash market closed with losses of 0.7% on Thursday.

The speculation around Kevin Warsh's potential nomination for Fed Chair is causing a hawkish shift in market sentiment, particularly affecting yields and the dollar. This dynamic has led to downward pressure on Asia-Pac equities, as investors recalibrate their expectations for U.S. monetary policy under a possible Warsh-led Fed, which is perceived to be less dovish than alternatives. Watch for continued volatility in both equity and fixed income markets as this narrative evolves.