HomeContributorsFundamental AnalysisAsian Equity Markets Trade Generally Lower Ahead Of China's May Data

Asian Equity Markets Trade Generally Lower Ahead Of China’s May Data

General Trend:

  • Financials continue to weigh on the Hang Seng; Bank of East Asia down over 7% on profit warning
  • Various HK banks reopen branches that were closed due to protests
  • Telecom Services and IT firms are among the decliners in Shanghai
  • Mining stocks rise in Australia as China iron ore futures hit another record high
  • Brent crude extends gains in Asian trading with the focus on recent tanker attacks in the Gulf of Oman
  • Aussie 3-year yield declines as more analysts call for below 1% RBA cash rate
  • NZD declines as manufacturing PMI hit multi-year low
  • Commodity currencies trade generally weaker ahead of China data
  • China May data (including industrial production) due to be released at 0700 GMT (3 AM EST)
  • Bank of Japan (BOJ) due to hold policy meeting next week on June 19-20th (Wed-Thursday)

Headlines/Economic Data

Australia/New Zealand

  • ASX 200 opened +0.1%
  • Navitas, Syrah, Seven West Media to be removed from the S&P ASX 200 index; Clinuvel, Service Stream and Austal to be added to the index
  • (AU) NAB now expects the RBA to also cut its cash rate to 0.75% in Nov 2019 (previously said it saw rate cuts in June and Aug 2019)
  • (AU) RBC now expects the RBA to cut the cash rate to 0.5% by May 2020
  • (NZ) New Zealand May Business Manufacturing PMI: 50.2 v 52.7 prior (multi-year low)

China/Hong Kong

  • Shanghai Composite opened +0.1%, Hang Seng -0.4%
  • (HK) Hong Kong lawmakers are reportedly open to extending extradition bill debate – South China Morning Post
  • (HK) Banks including HSBC and Bank of China HK said to raise mortgage rates for certain loans – HK media
  • (CN) Former PBoC Gov Zhou: Trade war could trigger global currency depreciation
  • (CN) China Commerce Ministry (MOFCOM) Spokesman Gao Feng: China to fight to the end if U.S. insists to escalate; China will not back down on principle issues in trade talks (comments from June 13th)
  • (CN) China to raise anti-dumping duties on US (up to 147.8%) and EU (up to 60.8%) seamless steel tubes; effective immediately
  • (CN) China PBoC sets yuan reference rate: 6.8937 v 6.8934 prior
  • (CN) China PBoC Open Market Operation (OMO): Injects CNY100B in 28-day reverse repos v CNY100B combined in 7-day and 28-day prior; Net CNY100B injected v CNY90B drain prior

Japan

  • Nikkei 225 opened +0.1%
  • (JP) Nikkei 225 June Futures and options said to settle at ~21,061
  • (JP) Japan Economy Min Motegi: Exchanged view on trade ‘candidly’ with USTR Lighthizer (as expected), declines to comment on details; will meet with Lighthizer before G20

Korea

  • Kospi opened -0.3%
  • (US) US to cut tariffs on South Korea hot-rolled steel – Korea Press
  • (KR) South Korea sells KRW300B v KRW300B indicated in 50-year bonds: avg yield 1.650% v 1.880% prior; bid to cover 1.82x
  • (KR) South Korea May Export Price Index M/M: 2.6% v 0.5% prior; Y/Y: 0.4% v -0.4% prior

Europe

  • (US) Sec of State Pompeo: Iran is responsible for today’s tanker attacks; Iran continues to actively work to interrupt flow of oil
  • (US) US reportedly has video of Iranian military removing unexploded mine from side of Japanese tanker – US Press
  • (UK) UK govt reportedly agrees with US assessment that Iran was responsible for attacks on two Gulf tankers – UK press
  • (IR) Iran Mission to UN: Rejects US claims as “unfounded” regarding the Gulf of Oman tanker attacks – Iranian Press
  • US Navy Destroyer USS Mason heading to Gulf of Oman to scene of attacks on oil tankers

Levels as of 1:20 ET

  • Nikkei 225, -0.3%, ASX 200 flat, Hang Seng -0.5%; Shanghai Composite -0.4%; Kospi -0.5%
  • Equity Futures: S&P500 +0.1%; Nasdaq100 -0.2%, Dax flat; FTSE100 +0.2%
  • EUR 1.1288-1.1270 ; JPY 108.40-108.26 ; AUD 0.6919-0.6891 ;NZD 0.6574-0.6527
  • Gold +0.5% at $1,349/oz; Crude Oil 0.5% at $52.54/brl; Copper -0.1% at $2.656/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