HomeContributorsFundamental AnalysisAsian Equities Trade Mixed After Fed Minutes

Asian Equities Trade Mixed After Fed Minutes

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: ÂĄ255.3B v ÂĄ147.7Be; Adj Trade Balance: ÂĄ65.2B v ÂĄ70.4Be.
  • (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.

 

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