Hang Seng Rises Upon Return From Holiday Amid Optimism In The US Press Regarding US/China Trade Talks, AUD/JPY Gains

May 02 19, 06:22 GMT

General Trend:

Financials weigh on equities in Australia, AMP drops on Q1 outflows
National Australia Bank (NAB) cut dividend and reported flat H1 profits
Australian lithium company Kidman Resources rises over 40% on takeover offer
Apple suppliers rise in Hong Kong after the company’s recent earnings report
Gaming shares trade mixed in Hong Kong, April Macau Gaming Rev missed ests
SJM Holdings rises over 10% in Hong post earnings
Hong-Kong listed China auto companies decline amid broker commentary
Little impact seen on Korean Won (KRW) from better CPI data, market remains focused on rate outlook
Taiwan Manufacturing PMI contracts for 7th straight month, selling prices fall further
Markets in China and Japan will remain closed on Friday
Traders continue to await US Treasury’s semi-annual currency report amid ongoing trade talks
US companies expected to report results on Thursday morning include AmerisourceBergen, Arrow Electronics, Avon, Cigna, Generac, Kellogg, Netscout Systems, PG&E Corp, Parker Hannifin, Stratasys, Teva, Tempur Sealy, Under Armour
Bank of England (BOE) due to meet later today

Headlines/Economic Data

Australia/New Zealand

ASX 200 opened -0.2%
NAB.AU Reports H1 (A$) Cash profit ex-restructuring costs 3.3B v 3.3B y/y; Net interest income 6.77B v 6.75B y/y
KDR.AU Receives offer to be acquired by Wesfarmers at A$1.90/shr for A$776M
WOW.AU Reports Q3 (A$) Rev 14.9B v 14.3B y/y
(NZ) New Zealand Mar Building Permits m/m: -6.9% v +1.9% prior

Japan

Nikkei 225 closed remainder of week for holiday
(JP) Japan PM Abe: Open to holding talks with North Korea Kim without conditions – Japan press
6752.JP Execs have noted that they do not want to invest more money into Tesla gigafactory until they are sure Tesla can sell Model 3 at $35K without losing money – Nikkei

Korea

Kospi opened -0.5%
(KR) SOUTH KOREA APR CPI M/M: 0.4% V 0.3%E; Y/Y: 0.6% V 0.4%E, Core CPI y/y: 0.9% v 0.8%e
(KR) South Korea Apr PMI Manufacturing: 50.2 v 48.8 prior, New export orders contract for 9th consecutive month (longest decline since 2015)

China/Hong Kong

Hang Seng opened -0.2%; Shanghai Composite closed for remainder of week for holiday
(US) Reportedly US/China trade deal is “possible” by next Friday – CNBC’s Tausche
(US) Reportedly US and China nearing deal to roll back certain tariffs – Politico
(CA) Canada Agricultural Minister: Has heard China has suspended export permits of two pork exporters in Canada
(HK) Macau Apr Gaming Rev (MOP) 23.6B v 23.8Be v 25.8B prior; Y/Y: -8.3% v -7.6%e (largest decline in ~3 years)
(HK) Hong Kong Monetary Authority (HKMA): Closely watching market development, to maintain HK$ exchange rate stability

Other Asia

North America

(US) FOMC LEAVES TARGET RANGE UNCHANGED BETWEEN 2.25-2.50%; CUTS IOER TO 2.35% FROM 2.40%; TO STAY PATIENT ON RATES AS ECONOMY IS SOLID AND INFLATION IS MUTED
(US) Fed Chair Powell: inflation weakness likely due to “transient” factors; some asset prices are elevated; don’t see any evidence at all of overheating economy
(US) APR ISM MANUFACTURING: 52.8 V 55.0E; PRICES PAID: 50.0 V 55.0E (lowest Manufacturing PMI since Oct 2016)
CAKE Reports Q1 $0.62 v $0.60e, Rev $600M v $602Me
PRU Reports Q1 $3.00 v $3.15e
ALL Reports Q1 $2.30 v $2.29e, Rev $11.0B v $9.78B y/y

Europe

(UK) PM May reportedly mulls staying in the EU customs union in order to secure a deal with Labour – FT
World Gold Council (WGC): Q1 global gold demand was ~1.05K tons, +7% y/y; notes continued growth in buying by central banks

Levels as of 1:20 ET

Nikkei 225, closed, ASX 200 -0.7%, Hang Seng +0.5%; Shanghai Composite closed; Kospi +0.3%
Equity Futures: S&P500 flat; Nasdaq100 +0.1%, Dax -0.6%; FTSE100 -0.3%
EUR 1.1210-1.1193 ; JPY 111.66-111.32 ; AUD 0.7029-0.7010 ;NZD 0.6640-0.6617
Gold -0.7% at $1,275/oz; Crude Oil -0.3% at $63.44/brl; Copper +0.4% at $2.802/lb