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Asian equities trade mixed after Fed minutes; Little initial impact seen from AU data or NZ budget; US 10-yr Treasury yield pares rise; Metals drop in China General Trend: - Hong Kong and South Korea returned from holiday - Miners trade generally lower after drop in Chinese metals FUTs - S&P ASX 200 has outperformed after lagging on Wed [Qantas supports Industrials index; REITs also outperform; Resources index extends decline] - Nikkei has pared the opening decline [Big component Fast Retailing extends drop amid the Xinjiang news] - Hang Seng has remained modestly lower [Financials see catch-up selling after Wed’s drop in the Shanghai Banks index; Tencent reports earnings after the close]; Chinese autos outperform amid comments from the NDRC - Shanghai Composite ended the morning session near the opening level (-0.3%) [Property and Banks indices lagged; Consumer indices rose] - Taiex opened slightly lower (-0.1%) following the move by Taiwan’s government to expand virus measures - Companies due to report during the NY morning include BJ’s Wholesale, Canadian Solar, Hormel Foods, Kohl’s, Man United, Children’s Place, Ralph Lauren, Triumph Group, Advanced Drainage Systems, Petco.
***Headlines/Economic Data***
Australia/New Zealand -ASX 200 opened 0.0% - (AU) AUSTRALIA APR EMPLOYMENT CHANGE: -30.6K V +20.0KE; UNEMPLOYMENT RATE: 5.5% V 5.6%E (6th consecutive decline in unemployment) - NUF.AU Reports H1 (A$) Net 58.9M v n/a y/y; underlying EBITDA 233.6M v 107.3M y/y; Rev 1.65B v 1.37B y/y - (AU) Australia May Consumer Inflation Expectations: 3.5% v 3.2% prior - (NZ) NEW ZEALAND 2021 BUDGET: Cuts bond issuance guidance for all years, raises CPI outlooks, adjusts GDP.
Japan -Nikkei 225 opened -0.6% - (JP) Japan Apr Trade Balance: ¥255.3B v ¥147.7Be; Adj Trade Balance: ¥65.2B v ¥70.4Be - (JP) JAPAN MAR CORE MACHINE ORDERS M/M: 3.7% V 5.0%E; Y/Y: -2.0% V %-3.3E; Overseas machinery orders -53.9% y/y (1st decline in 6-months) - (JP) IOC Pound wants to make decision on Tokyo Olympic games by the end of June - Japan press - 9983.JP Notes US Customs has blocked imports of Uniqlo Shirts in Jan due to use of Xinjiang sourced cotton, later denied sourcing from Xinjaing (yesterday after the close) - (JP) Japan Defense Min plans to boost defense spending without concern for adhering to longstanding limit of 1% of GDP - Nikkei.
Korea -Kospi opened +0.1% - 051910.KR Said that Company will supply Cathode materials for Tesla Model Y - Press -(KR) South Korea companies expected to announce combined $35.3B in investment plans in the US as part of President Moon's visit to see Biden (currently happening) - Yonhap.
China/Hong Kong -Hang Seng opened -0.6%; Shanghai Composite opened -0.3% - (CN) CHINA PBOC MONTHLY LOAN PRIME RATE (LPR) SETTING: LEAVES BOTH 1-YEAR AND 5-YEAR RATES UNCHANGED (13TH CONSECUTIVE MONTH OF STEADY RATES ) - (CN) China Apr Swift Global Payments CNY: 2.0% v 2.5% prior - USD/CNY PBOC Researcher said China will need to eventually give up exchange-rate control - US financial press - (CN) China PBOC sets Yuan reference rate: 6.4464 6.4255 prior - (CN) China PBOC Open Market Operation (OMO): Injects CNY10B in 7-day reverse repos v CNY10B in 7-day reverse repos prior; Net CNY0B v Net CNY0B prior - (CN) Inner Mongolia has called on the public to report illegal crypto mining operations – SCMP - (CN) China State Council said to urge maintaining a stable monetary policy and stable CNY currency (Yuan) exchange rate - (CN) China Standing Committee of State Council to increase tariffs on some steel products - Chinese press.
Other - (TW) Taiwan to tighten water curbs in key chip producing areas of Hsinchu and Taichung on June 1st if no significant rainfall has been received by then - press.
North America - F Ford and SK Innovation reportedly to announce Thurs an MOU for EV battery JV based in the United States - press - GOOGL Waymo unit said to consider raising as much as $4B as it studies potential public listing – press - (US) Said that Democrats are considering weakening Biden Capital gains tax for estates – press - ((US) FOMC APR MINUTES: GENERALLY NOTED ECONOMY REMAINED FAR FROM MAXIMUM-EMPLOYMENT AND PRICE-STABILITY GOALS; A NUMBER OF PARTICIPANTS NOTED IT MAY BE APPROPRIATE AT SOME POINT IN UPCOMING MEETINGS TO BEGIN DISCUSSING PLAN TO ADJUST PACE OF ASSET PURCHASES.
Europe - (DE) ECB's Schnabel (Germany): ECB sees no reason to raise interest rates as inflation expected to fall next year - local press - (RU) Russia Foreign Min Lavrov and US Sec of State Blinken agreed to leave it to Russia Kremlin and White House to announce date of Biden Putin summit.
***Levels as of 01:15ET*** - Hang Seng -0.9%; Shanghai Composite -0.3%; Kospi -0.5%; Nikkei225 +0.3%; ASX 200 +1.1% - Equity Futures: S&P500 -0.0%; Nasdaq100 -0.1%, Dax +0.3%; FTSE100 +0.8% - EUR 1.2187-1.2169; JPY 109.31-109.09; AUD 0.7750-0.7718; NZD 0.7183-0.7157 - Commodity Futures: Gold -0.3% at $1,876/oz; Crude Oil +0.3% at $63.55/brl; Copper +0.3% at $4.58/lb.
- Source TradeTheNews.com
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