Asian markets gear up for a rocky start

Asian markets are buckling up for a rough ride this Monday, still reeling from last Friday's seismic shifts in the global financial landscape. The trigger? A U.S. employment report that missed the mark so badly didn't just drop jaws—it dropped stocks and bond yields while sending volatility and rate cut expectations through the roof.

Last week, the mood was already souring in Asia, thanks to a cocktail of unsettling developments: a surprisingly hawkish turn from the Bank of Japan, China's economic pace slowing to a crawl, and U.S. tech giants delivering earnings that were more 'meh' than marvellous. Mix these, and you have the perfect market meltdown recipe.

With Wall Street in a tailspin after the dismal U.S. payroll data, an early Monday market meltdown in Asia seems more like a sure bet than a possibility. While today's panic might be tomorrow's punchline, it certainly highlights how twitchy the markets are to any rumblings from the U.S. economic data front.

In a dramatic finale, the two-year U.S. Treasury yield took a cliff dive, marking its steepest single-day drop since the banking shake-up last March—down 30 basis points. Over the week, it shed 50 basis points, a nosedive reminiscent of the darkest days of the infamous Black Monday. This stark drop-off serves as a harsh reminder of the ongoing market jitters and the rocky road that could lie ahead.

In the thrilling world of equities, the VIX volatility index took a joyride on Friday, effectively strapping traders into the rollercoaster nobody asked for.

The frenzied rush to unwind carry trades catapulted the yen nearly 5% higher against the dollar last week. And as we start the new week, amid yet another carry trade unwind in choppy risk-off seas, the yen is once again trading on the front foot.