General Trend:
- Asian travel-sensitive stocks track the outperformance seen during Monday’s US session
- Various US-listed drug companies price stock offerings after recent data from Moderna; Moderna priced stock offering within market expectations
- RBA May Minutes: Liaisons suggest retail sales fell in Apr [prelim April retail sales due on Wed]
- Australia Stats Agency: latest data shows a further slowing in the fall in COVID-19 job losses between mid-April and early May.
- Indonesia Central Bank expected to cut rates by 25bps
- Fed Chair Powell and US Treasury Sec Mnuchin are due to remotely testify before the Senate Banking Committee on Tuesday (May 19th at 2 PM GMT)
Headlines/Economic Data
Australia/New Zealand
- ASX 200 opened +0.7%
- (AU) Australia Trade Min Birmingham: China decision to impose tariff on barley is deeply disturbing; The comments came as China placed punitive tariffs equal to more than 80% on barley imports from Australia
- (AU) Australia mid-Mar to May 2nd Payroll Jobs w/w: -7.3% v -7.1% prior; Week ended May 2nd Jobs w/w: -1.1% v -0.9% prior
- (AU) Australia will consider going to World Trade Organization (WTO) over barley tariffs imposed by China
- (NZ) New Zealand Q1 PPI Input q/q: -0.3% v 0.3% prior; PPI Output q/q: 0.1% v 0.5% prior
- (AU) Reserve Bank of Australia (RBA) adds A$400M to banking system through repos vs A$199M prior
- (NZ) Reserve Bank of New Zealand (RBNZ) Deputy Gov Bascand: Expects more certainty on virus situation in 3-months, will then re-evaluate whether to do more or take the foot off the pedal; could extend and expand asset purchase program further, FX level is supporting exports’ dont expect negative rates to be deployed in retail markets for individual households and depositors
- JHX.AU Reports FY20 Net $241.5M v $228.8M y/y, adj EBIT $486.8M v $404.6M y/y; Rev $2.61B v$2.51B y/y
- (NZ) Reserve Bank of New Zealand (RBNZ) Assistant Gov Hawkesby: RBNZ sees no need to adjust stimulus in wake of Govt budget; Projections assume NZ dollar will depreciate
- (AU) RESERVE BANK OF AUSTRALIA (RBA) MEETING MINUTES FROM MAY 5TH:MEMBERS AGREED THAT THE BANK’S POLICY PACKAGE WAS WORKING BROADLY AS EXPECTED
- (AU) Reserve Bank of Australia (RBA) Liaison suggests retail sales in April declined; Reminder prelim Apr retail sales data is due to be released tomorrow
Japan
- Nikkei 225 opened +1.7%
- Softbank, 9984.JP Reports FY19/20 Net -¥961.6B v +¥1.41T y/y; Op -¥1.36T v +¥2.07T y/y; Rev ¥6.19T v ¥6.09T y/y; does not guide, Vision fund loss ¥1.9T
- (JP) Japan said to be considering economy has entered into recession – Nikkei
- (JP) Reported than Japan LDP ruling party is considering ¥10T financing for virus hit companies – Japan press
- (JP) Follow Up: Japan has placed curbs on foreign ownership in utilities – financial press
- (JP) Japan Fin Min Aso: Q2 GDP also likely to be severe, reflecting severe economic conditions; will make sure to support employment and help firms stay solvent
- (JP) Japan Econ Min Nishimura: Japan will provide financial support to students by using reserve funds; Japan Govt targets approving mid year policy guidelines around mid-July
Korea
- Kospi opened +2.1%
- (KR) Fitch: sees weakening financial performance in South Korea top 4 banks, coronavirus reduces ratings headroom on banks
- (KR) South Korea confirms 13 additional coronavirus cases, 0 additional deaths; Total cases 11,078, total deaths 263
- 042670.KR Creditors are asking Doosan Group to sell Doosan Infracore and have Doosan Heavy buy a stake in Doosan Bobcat – Korean press
China/Hong Kong
- Hang Seng opened +2.3%; Shanghai Composite opened +0.8%
- (CN) China issues guidelines to accelerate the improvement of its socialist market economy in the new era to build a high-level socialist market economy that is more systematic, mature and well-shaped
- (CN) China National Health Commission Coronavirus Update for May 18th: 6 additional cases (3 imported v 4 prior) v 7 prior; Additional deaths: 0 v 0 prior; Additional Asymptomatic cases: 17 v 18 prior
- (CN) China PBOC sets Yuan reference rate: 7.0912 v 7.1030 prior
- (CN) China PBoC Open Market Operation (OMO): Skips Reserve Repo Operations for the 31st consecutive session; Net CNY0B v CNY0B prior
North America
- (US) Pres Trump: I started taking hydroxychloroquine a couple weeks ago; have not been exposed to COVID-19; so far I seem OK
- (US) NASDAQ said to be tightening/restricting IPO and listing rules for companies from China – US financial press
- MRNA Prices 17.6M shares at $76.00/shr raising $1.34B (4.7% of shares outstanding) [In line with press speculation]
Europe
- (UK) UK PM Johnson under pressure to disclose scientific advice to lawmakers, behind UK’s response to the pandemic – press
Levels as of 1:15ET
- Hang Seng +1.9%; Shanghai Composite +0.7%; Kospi +2.2%; Nikkei225 +1.9%; ASX 200 +2.1%
- Equity Futures: S&P500 -0.0%; Nasdaq100 +0.1%, Dax +0.2%; FTSE100 +0.2%
- EUR 1.0924-1.0902; JPY 107.45-107.30; AUD 0.6550-0.6511; NZD 0.6058-0.6034
- Commodity Futures: Gold +0.3% at $1,738/oz; Crude Oil +0.4% at $31.75/brl; Copper -0.3% at $2.41/lb
