HomeContributorsFundamental AnalysisAsian Equities Trade Mixed Amid Declines In Europe And Recent US Holiday

Asian Equities Trade Mixed Amid Declines In Europe And Recent US Holiday

General Trend

  • Baby-related stocks in Australia/NZ move higher after China news.
  • Nikkei moved lower after the higher open [Big component Softbank Group drops over 1%; Topix Iron & Steel index drops over 1%].
  • Hang Seng has moved higher [TECH index rises over 1.5%; Miners and Financials trade generally lower; Airlines drop amid new virus cases in Guangdong].
  • Shanghai Composite ended the morning session near the opening level (-0.2%) [Financials declined amid news related to Huarong].
  • S&P ASX 200 opened flat then declined [Financials dropped ahead of RBA decision; Resources index gained as China ore prices rose; Energy index tracked rise in oil prices].
  • Australia Q1 GDP data are due on Wed (June 2nd).
  • RBA Dep Gov Debelle is due to appear before Senate Economics Legislation Committee on Wed (Jun 2nd).
  • Companies due to report during the NY morning include Kirkland’s, LightInTheBox.

Headlines/Economic Data

Australia/New Zealand.

  • ASX 200 opened 0.0%.
  • (AU) AUSTRALIA Q1 CORP OP PROFIT Q/Q: -0.3% V 3.4%E; INVENTORIES Q/Q: 2.1% V 0.2%E.
  • (AU) Australia May Final PMI Manufacturing: 60.4 v 59.9 prelim (record high, 12th consecutive monthly expansion).
  • (AU) Australia May TD Inflation Gauge M/M: -0.2% v +0.4% prior.
  • (AU) AUSTRALIA APR BUILDING APPROVALS M/M: -8.6% V -10.0%E; Private Sector Houses Approvals M/M: 4.6% v 2.0% prior.
  • (AU) RESERVE BANK OF AUSTRALIA (RBA) LEAVES CASH RATE TARGET UNCHANGED AT 0.10%; AS EXPECTED.

Japan

  • Nikkei 225 opened +0.5%.
  • (JP) JAPAN Q1 CAPITAL SPENDING (CAPEX) Y/Y: -7.8% V -6.8%E; CAPITAL SPENDING EX-SOFTWARE: -9.9% V -7.6%E, Company profits: +26.0% v -0.7% prior.
  • (JP) Certain Japan Olympics Panel members said to have warned against holding the Tokyo Olympics.
  • (JP) Japan May Final PMI Manufacturing: 53.0 v 52.5 prelim (Confirms 4th month of expansion).

Korea

  • Kospi opened +0.1%.
  • (KR) South Korea May Trade Balance: $2.9B v $3.8Be; Exports Y/Y: 45.6% v 48.9%e (largest gain since 1988).
  • (KR) South Korean steelmakers have raised automotive steel prices for the first time in 4-years by KRW50K ($45)/ton – Yonhap.
  • (KR) South Korea Vice Fin Min Lee: Inflation may increase temporarily above 2% in Q2; Chances of inflation Y/Y >2.0% is limited.
  • (KR) South Korea May PMI Manufacturing: 53.7 v 54.6 prior (lowest since Jan 2021).

China/Hong Kong

  • Hang Seng opened 0.0%; Shanghai Composite opened -0.2%.
  • (CN) CHINA MAY CAIXIN PMI MANUFACTURING: 52.0 V 52.0E (13TH MONTH OF EXPANSION, highest since Dec).
  • (CN) China PBOC raised Forex Reserve Requirement for financial institutions by 200 bps to 7.0%; effective June 15th – press (yesterday after the close).
  • (CN) China Politburo to hold a major meeting on optimizing policies and how to deal with an aging population; China to allow three children per couple – Xinhua.
  • (CN) Former head of China Digital Yuan project Yao Qian said central bank digital currencies (CBDCs) could use blockchain networks like Ethereum – Press.
  • (CN) China Environmental Authority in Tangshan said to be relaxing steel output restrictions – Caixin.
  • (CN) China PBOC sets Yuan reference rate: 6.3572 v 6.3682 prior (Strongest since May 15, 2018).
  • (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) Former China SAFE official Guan Tao said a move by PBOC to raise the FX reserve requirement shows the central bank will not allow the yuan to appreciate ‘too fast’ – US financial press.
  • (CN) China said to consider a new holding company for Huarong and bad debt managers. modeled after one that currently holds state-owned banks’ bad debt – press.
  • (CN) Xinhua posted an online survey on Weibo asking if readers were ready for a 3rd child (after Govt announcement yesterday) within 30 minutes, more than 30K has responded, of that 90% said “absolutely not considering”; was quietly removed.
  • (HK) Macau May Casino Rev (MOP): 10.4B v 8.4B prior; Y/Y: 492.2% v 467%e.

Other

  • OPEC+ technical meeting (JMMC) said to maintain its 2021 global growth forecast at 6.0M bpd – press.

North America

  • Reminder US markets closed for the holiday.
  • (US) US regulators reportedly signal a bigger role in cryptocurrency market – FT.
  • (JP) US Treasury Sec Yellen to meet with Japan Fin Min Aso on June 4.

Europe

  • G7 Draft Communique: Central bank digital currencies could act as liquid safe settlement asset and anchor for payment system; affirm exchange rate commitments from May 2017; To keep supporting their economies as they emerge from the pandemic and to reach an “ambitious” deal on a minimum global corporate tax in July.
  • (NL) ECB’s Knot (Netherlands): shrinking the ECB balance sheet will be a lengthy process, see no signs rising inflation rates will be permanent.
  • (EU) According to an ECB study of central bank strategies across 20 economies showed when targeting inflation there is better success if a range is used rather than a specific target.
  • (FR) France May New Car Registrations: 141.0K, 46.5% y/y, -27.3% from 2019 – CCFA.
  • (IE) Ireland May PMI Manufacturing: 64.1 v 60.8 prior (record high).
  • (CH) Swiss National Bank (SNB) Vice Chairman Zurbruegg: Reiterates FX stance that it welcomes recent weakness in CHF, but CHF still highly valued.

Levels as of 01:15ET

  • Hang Seng +0.6%; Shanghai Composite -0.1%; Kospi +0.6%; Nikkei225 -0.2%; ASX 200 -0.1%.
  • Equity Futures: S&P500 +0.0%; Nasdaq100 +0.1%, Dax +0.3%; FTSE100 -0.5%.
  • EUR 1.2237-1.2222; JPY 109.61-109.34; AUD 0.7769-0.7732; NZD 0.7289-0.7263.
  • Commodity Futures: Gold +0.4% at $1,913/oz; Crude Oil +1.9% at $67.59/brl; Copper +0.4% at $4.68/lb.
Trade The News
Trade The Newshttp://www.tradethenews.com/
All information provided by Trade The News (a product of Trade The News, Inc. "referred to as TTN hereafter") is for informational purposes only. Information provided is not meant as investment advice nor is it a recommendation to Buy or Sell securities. Although information is taken from sources deemed reliable, no guarantees or assurances can be made to the accuracy of any information provided. 1. Information can be inaccurate and/or incomplete 2. Information can be mistakenly re-released or be delayed, 3. Information may be incorrect, misread, misinterpreted or misunderstood 4. Human error is a business risk you are willing to assume 5. Technology can crash or be interrupted without notice 6. Trading decisions are the responsibility of traders, not those providing additional information. Trade The News is not liable (financial and/or non-financial) for any losses that may arise from any information provided by TTN. Trading securities involves a high degree of risk, and financial losses can and do occur on a regular basis and are part of the risk of trading and investing.

Featured Analysis

Learn Forex Trading