HomeContributorsFundamental AnalysisAsian Equity Markets Trade Higher After US Stocks Mostly Gained

Asian Equity Markets Trade Higher After US Stocks Mostly Gained

General Trend:

  • Resources, energy, utilities and REIT companies rise in Australia
  • Automakers, securities brokers and electric appliance firms are among the gainers in Japan
  • Japan’s wages declined for the 4th straight month in April
  • US Treasury Sec Mnuchin is expected to meet with China PBoC Gov Yi Gang at this weekend’s G20 Finance Ministers/Central Bank Governors meetings
  • China PBoC Gov: [This weekend’s] trade talks with US Treasury Sec Mnuchin at G20 to be ‘difficult’; no yuan exchange rate number more important than others, trade war would have temporary depreciation effect on CNY
  • Japan Finance Min and US Treasury Sec Mnuchin are speculated to discuss possible currency clause related to trade talks at the upcoming G20 meetings
  • US monthly payrolls data due later today

Headlines/Economic Data

Australia/New Zealand

  • ASX 200 opened +0.5%
  • (AU) AUSTRALIA APR HOME LOANS M/M: -1.1% V 0.0%E
  • (AU) Australia May AiG Performance of Construction Index: 40.4 v 42.6 prior (6-year low, 9th consecutive month of contraction)
  • (AU) RBA: Adjusts committed liquidity facility (CLF), cites rise in the volume of high quality liquid assets securities over recent years
  • (NZ) NEW ZEALAND Q1 VOLUME OF ALL BUILDINGS Q/Q: 6.2% V 1.1%E

China/Hong Kong

  • Shanghai Composite and Hang Seng are closed for holiday
  • (US) US President Trump: decision on additional China tariffs will be made after G20 meeting (June 28-29), will make decision in the next two weeks
  • (CN) China MOF spokesperson: U.S. tariff deadline extension will not change tariff date [Comments on US tariff deadline extension to Jun 15th]
  • (CN) China Commerce Ministry (MOFCOM) Spokesman Gao Feng: Will release list of ‘unreliable’ foreign companies in the near future
  • (CN) China National Development and Reform Commission (NDRC) holds meeting with local govts related to rare earths – press

Japan

  • Nikkei 225 opened +0.4%
  • (JP) JAPAN APR LABOR CASH EARNINGS Y/Y: -0.1% V -0.7%E; REAL CASH EARNINGS Y/Y: -1.1% V -1.5%E (4th consecutive decline)
  • (JP) Japan Apr Household Spending Y/Y: 1.3% v 2.6%e
  • (JP) Japan May Foreign Reserves: $1.31T v $1.29T prior
  • (JP) Bank of Japan (BOJ) announcement related to daily bond buying operation: Increases 10-25 yr JGB purchases to ¥200B from ¥160B (in line with prior BOJ comments)

Korea

  • Kospi opened +0.1%
  • (KR) US President Trump to visit South Korea June 29-30th – South Korean Press

Other

  • (ID) Indonesia Central Bank Deputy Gov Waluyo: Rate cut is not a matter of if but when

North America

  • (MX) Mexico Foreign Min Ebrard: Talks on tariffs and migration to continue on Fri; confirms will deploy National Guard to border with Guatemala to contain migrants; talks are advancing but no agreement yet
  • (MX) Mexico and US considering outlines of deal that could boost Mexico immigration enforcement efforts andgive US more latitude to deport asylum-seekers – Washington Post
  • (MX) US said to be considering delaying Mexico tariffs as implementation date approaches; Mexican officials seek more time for talks – press
  • (MX) White House Press Sec Sanders: US is still moving ahead with Mexico tariffs on Monday at this time
  • (US) Fed’s Williams (moderate, voter): We must remain prepared to adjust views on where economy is going to go; may need to keep rates the same or may need to adjust them

Europe

  • (UK) Germany and most other EU governments will back another delay to Brexit regardless of who becomes the new UK PM – UK Press
  • (UK) Labour Party reportedly won election in Peterborough – UK Press

Levels as of 1:20 ET

  • Nikkei 225, +0.5%, ASX 200 +0.7%, Hang Seng closed; Shanghai Composite closed; Kospi +0.1%
  • Equity Futures: S&P500 +0.1%; Nasdaq100 +0.1%, Dax +0.3%; FTSE100 +0.2%
  • EUR 1.1286-1.1267 ; JPY 108.53-108.31; AUD 0.6983-0.6972 ;NZD 0.6628-0.6614
  • Gold -0.4% at $1,337/oz; Crude Oil +1.3% at $53.25/brl; Copper +0.3% at $2.656/lb
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