HomeContributorsFundamental AnalysisQuiet Trading Session For USD/JPY Amid Golden Week Holiday In Japan

Quiet Trading Session For USD/JPY Amid Golden Week Holiday In Japan

General Trend:

  • Chinese markets trade flat in early trade after recent gains; Financials rise ahead of upcoming earnings, tech shares under perform
  • Shanghai Telecom Services index drops ahead of possible earnings from ZTE
  • China brokerage firms under perform overall gains in Shanghai Financials index, some cite concerns about slower equity volumes
  • DBS rises over 2% in Singapore on better than expected earnings
  • Australian graphite producer Syrah Resources declines after production update, sees flat demand
  • Lithium exposed Pilbara Minerals drops over 3% in Australia, Q3 sales volumes declined
  • South Korea Kospi rises as government pledges to support exports for key sectors (including semiconductors)
  • South Korean cosmetics firm Amorepacific cut forecast
  • US/China expected to begin trade talks in China on April 30th (Tuesday)
  • Aussie rises amid upcoming US/China talks and month-end demand; RBA meet next week (May 7th)
  • China PBoC continues to skip its reverse repo operations, says month-end fiscal spending can offset reverse repo maturities
  • Brent Crude Futures decline amid contract roll, extends decline from Friday
  • Today is seen as another heavy day for HK/China earnings. Companies expected to report include ICBC, Bank of China, Jiangxi Copper, Sinopec, China Southern Airlines, Ping An Insurance, China Construction Bank, WH Group, ZTE, CHALCO and Great Wall Motor.
  • China official PMI data due on Tuesday (April 30th)

Headlines/Economic Data

Australia/New Zealand

  • ASX 200 opened slightly lower
  • COL.AU Reports Q1 (A$) Rev 8.88B v 8.0Be
  • ORI.AU To recognize negative A$191M (after tax A$134M) non-cash adjustment in H1
  • (AU) Australia Coalition now trails Labor party 49-51 in election polling
  • (AU) Australia sells A$300M v A$300M indicated in 3.25% June 2039 bonds, avg yield 2.224%, bid to cover 2.30x
  • (AU) Australia Labor Party said to plan to take more conciliatory approach to China – Australian press

Japan

  • Nikkei 225 closed all week for holiday
  • (JP) According to recent survey 48% of Japanese are against sales tax hike scheduled for Oct – Japan press

Korea

  • Kospi opened +0.2%
  • (KR) South Korea Fin Min: Will prepare measures to boost exports for key sectors in May and June; Aware of view that policy interest rate need to be lowered to boost growth; will respond if FX volatility worsens, no plans to revise GDP target
  • 090430.KR Reports Q1 (KRW) Net 123.5B v 152Be; Op 186.6B v 204Be; Rev 1.45T v 1.5Te; Overseas op profit -43.7% y/y

China/Hong Kong

  • Hang Seng opened +0.4%; Shanghai Composite opened +0.1%
  • (CN) China PBoC Open Market Operation (OMO): Skips reverse repo operations for 6th consecutive session: Net: CNY0B (nil) drain v CNY20B drain prior
  • (CN) China PBoC sets yuan reference rate: 6.7310 v 6.7307 prior
  • (CN) CHINA MAR INDUSTRIAL PROFITS YTD Y/Y: -3.3% V -14.0% PRIOR
  • 0728.HK Reports Q1 (CNY) Net 5.9B v 5.7B y/y, EBITDA 30.2B v 26.5B y/y, Rev 96.1B v 96.6B y/y
  • – (CN) China Pres Xi: over $64B of deals have been signs at the ‘Belt and Road’ forum
  • BYD, 1211.HK Reports Q1 (CNY) Net 749.7M v 102.4M y/y, Rev 30.3B v 24.7B y/y
  • (CN) China Ministry of Commerce (MOFCOM) Vice Min Wang: Working to cut China’s negative investment list, will release new FDI negative list in H1 2019
  • (US) US Treasury Sec Mnuchin: Reiterates trade negotiation with China are in ‘the final laps” – US press

Other Asia

  • DBS.SG Reports Q1 (S$) Net 1.65B v 1.5Be, Net interest income 2.3B v 2.1B y/y

North America

  • DIS ‘Avengers: Endgame’ top movie in the N. American box office with $350M in sales, made $1.2B in global sales in opening week, both record highs
  • GDI Reportedly nearing deal with Ingersoll-Rand – US Press
  • APC Decides Occidental Corp’s bid could lead to better deal than Chevron – Financial Press
  • BA FAA may clear Boeing’s 737 MAX to resume flight operations by late May or early June – Seattle Times

Europe

  • (ES) Spain Snap Election Results: Socialists Party of PM Sanchez wins with 123 seats (97% of votes counted), will need to form coalition to get majority of 176 seats, likely with far left, anti-austerity Podemos

Levels as of 01:20ET

  • Hang Seng +0.8%; Shanghai Composite +0.1%; Kospi +1.2%; Nikkei225 closed for holiday; ASX 200 -0.5%
  • Equity Futures: S&P500 +0.0%; Nasdaq100 +0.1%, Dax +0.0%; FTSE100 -0.0%
  • EUR 1.1145-1.1161; JPY 111.53-111.64; AUD 0.7037-0.7059; NZD 0.6653-0.6681
  • Commodity Futures: Gold -0.1% at $1,287/oz; Crude Oil -0.5% at $62.97/brl; Copper -0.1% at $2.89/lb
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