Morning Market Update: Asia trades lower after drop on Wall St. amid holidays via TradeTheNews

AU Resources index drops over 3%, China ore prices decline; USD index flat after prior decline, Fed minutes due later today.

General Trend: - US equity FUTs extended declines during Asia; South Korea and HK are closed for holidays - S&P ASX 200 lags and drops over 2% [Resources index declines over 3% amid lower ore prices in China; Financials also decline; EML Payments weighs on Tech index] - Nikkei has declined by over 1.9% after the lower open [Large components (Fast Retailing, Softbank) drop over 2%] - Shanghai ended the morning session modestly lower [Banks drop after the recent Huarong news] - Taiwan sees relatively calm session versus the recently seen volatility - Australia April jobs data due on Thurs (May 20th) - NZ budget to be released on Thurs (May 20th) - PBOC is expected to leave its 1 and 5-year loan prime rates unchanged on Thurs (May 20th) - Companies due to report during the NY morning include Analog Devices, Eagle Materials,, Lowes, Target, TJX, VIPShop.

***Headlines/Economic Data***

Australia/New Zealand -ASX 200 opened 0.0% - (AU) AUSTRALIA Q1 WAGE PRICE INDEX Q/Q: 0.6% V 0.5%E; Y/Y: 1.5% V 1.4%E - APE.AU Guides April YTD Underlying Op for cont ops ~A$127M; statutory pretax ~A$170M - APX.AU Affirms FY21 Underlying EBITDA guidance of $83-90M; To restructure.

Japan -Nikkei 225 opened -1.3% - (JP) Bank of Japan (BOJ) Gov Kuroda: BOJ won't hesitate to add easing if needed, Uncertainty regarding Japan Economic outlook high - 9984.JP Adani Green Energy to acquire Softbank backed, India renewable power SB Energy, for $3.5B from Softbank and Bharti - (JP) Japan government plans to establish a new system for the allocation of mobile spectrum - Japan press - 6502.JP Bain's Sugimoto denies considering purchase of Toshiba, targeting IPO of Kioxia by Fall or Winter – Press - (JP) Japan Chief Cabinet Sec Kato: WIll handle adding state of emergency areas flexibly based on the situation - (JP) Japan MoF sells ¥2.5T v ¥2.5T indicated in 0.0% (prior 0.10%) 5-year JGBs; avg yield -0.0970% v -0.0910% prior, bid to cover 3.30x v 4.55x prior - (JP) Japan Mar Final Industrial Production M/M: 1.7% v 2.2% prelim; Y/Y: 3.4% v 4.0% prelim.

Korea -Kospi closed for holiday - (KR) US President Biden looking to build on the "Singapore deal" Trump made with North Korea - press.

China/Hong Kong -Hang Seng closed for holiday; Shanghai Composite opened -0.2% - (CN) China PBOC sets Yuan reference rate: 6.4255 v 6.4357 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 - 2799.HK Said to be planning to pay USD bond holders on time - Shanghai Securities News - (CN) China National Energy Administration (NEA) has shortened the approval process for coal production to 30 days (prior 60) - (CN) China Vice Premier Liu He's son has invested heavily in tech industry – FT **Reminder earlier today press reported China was considering replacing Vice Premier Liu He as its top economic envoy with Washington - (CN) China sees herd immunity related to COVID by the end of 2021, daily vaccinations have the ability to exceed 20M if needed - Global Times.

Other - TTMT.IN Reports Q4 (INR) Net -76.1B v -98.9B y/y, Rev 886.3B v 875.2Be; Deferred decision on fund raising to a subsequent board meeting (yesterday after the close).

North America - (US) Weekly API Crude Oil Inventories: +0.6M v -2.5M prior - (CN) US Treasury says it will allow some transactions with Chinese military-backed companies - press.

Europe - (UK) PM Johnson pushing to get free trade agreement signed with Australia, said to be planning to offer tariff-free access to Australia related to food, UK farmers are concerned over impact – press - (CN) European Parliament expected to pass motion Thursday that will formally freeze progress on EU, China investment deal ratification - press.

***Levels as of 01:05ET*** - Hang Seng closed for holiday; Shanghai Composite -0.5%; Kospi closed for holiday; Nikkei225 -1.7%; ASX 200 -2.0%

- Equity Futures: S&P500 -0.5%; Nasdaq100 -0.5%, Dax -0.3%; FTSE100 -1.0% - EUR 1.2235-1.2217; JPY 109.08-108.83; AUD 0.7798-0.7779; NZD 0.7250-0.7226

- Commodity Futures: Gold +0.0% at $1,868/oz; Crude Oil -1.2% at $64.69/brl; Copper -0.5% at $4.68/lb.

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