S&P 500 futures drop 0.30% in Asia

• Drop in S&P 500 futures indicates a mild risk aversion,
• Caps upside in USD/JPY and 10-year treasury yield.

The S&P 500 futures are down 0.30 percent in Asia, signaling a mild risk aversion. The index closed 0.5 percent or 30 points lower yesterday.

As of writing, the futures are trading at $2657.

The soft tone in the US index futures could be keeping investors from selling Yen. Thus, USD/JPY is flat-lined around 109.30. Also trading largely unchanged on the day at 2.8 percent is the US 10-year treasury yield.

Meanwhile, Asian indices are trading mixed. The winning side includes Nikkei, Hang Seng, and Kospi, while names like Shanghai Composite and S&P ASX 200 are on the losing side.

That said, global equities could witness another round of sell-off if (and when) the 10-year yield moves above the recent high of 2.87 percent.