General trend
- Asian equity markets are generally lower [US equity markets ended lower on Fri; CN and JP markets are closed for holidays], indices are off of their best levels.
- Energy cos. trade generally lower in HK and AU after recent drop in oil prices.
- Hang Seng extended decline after dropping on Fri. [Banks continue to drop after recent earnings from ICBC; Gaming names drop after weaker monthly Macau casino revenues; Ping An Insurance declines after report about Founder Securities bailout].
- S&P ASX 200 has pared gains [Energy and Resources indices decline; Financials rise after earnings from Westpac]
- South Korea’s ban related to short-selling partially ended today (May 3rd); as of today, short-selling will be permitted for large caps [200 large-cap companies listed on the KOSPI and 150 firms listed on the KOSDAQ].
- US equity FUTs begin the month modestly higher.
- Japan markets are closed for holiday May 3-5th (Mon-Wed).
- Shanghai markets are also closed May 3-5th.
- RBA is due to release its monetary policy decision on Tuesday (May 4th), economic forecasts are due on May 7th (Friday).
- Companies expected to report during the NY morning include ON Semiconductor, PetMed Express.
Headlines/Economic data
Australia/New Zealand
- ASX 200 opened 0.0%.
- WBC.AU Reports H1 (A$) adj Cash profit 3.8B (un-adj 3.5B) v 993M y/y, Net interest income 8.3B v 9.0B y/y, Net Op Rev 10.7B v 10.6B y/y.
- (AU) Australia Apr AiG Performance of Manufacturing Index: 61.7 v 59.9 prior (7th consecutive increase, 3rd highest on record).
- SWM.AU Guides Q3 Advertisement rev at the upper end of 7-10% range; Signs 3-year agreement with Facebook; Finalizes 5-year partnership with Google.
- (AU) Australia Treasurer Frydenberg: Next week’s federal budget will include a A$1.7B investment in childcare (GEM.AU, TNK.AU).
Japan
- Nikkei 225 closed for holiday through the 5th.
- 7974.JP Said to be increasing switch production to ~30M units during FY21/22, planning to release an updated Switch that will have better graphics – Nikkei.
- (JP) Japan PM Suga reiterated constitution needs to be revised to specify the role of the Self-Defense Forces, doing that will be a campaign promise of the Liberal Democratic Party (LDP) for the next lower house election – Japan press.
Korea
- Kospi opened 0.0%.
- (KR) South Korea Apr Trade Balance: $0.4B v $3.1Be; Exports Y/Y: 41.1% v 42.0%e (10-year high); Semiconductor equipment imports +134.4% y/y.
- (KR) Joint statement from Japan, China, South Korea Fin Mins and Central Bank Govs: Regional outlook has improved, need to remain vigilant as economic recovery has been uneven.
- (KR) South Korea Apr PMI Manufacturing: 54.6 v 55.3 prior (7th consecutive expansion).
China/Hong Kong
- Hang Seng opened -0.2%; Shanghai Composite closed for holiday through the 5th.
- 2799.HK Vice President Xu Yongli said co. is ‘well prepared’ for bond repayments, firm is in a ‘good’ financial position – Chinese pres.
- (HK) Macau Apr Casino Rev (MOP): 8.4B v 8.3B prior; Y/Y: 1,014% v 1,054%e.
- 521.HK JD.com unit, Fosun, Ping An, Juneyao, Air China all said to be interested in operations of HNA (who is being reorganized under Govt control) – press.
- (HK) Hong Kong Monetary Authority (HKMA) Chief Exec Yue: Exchange Fun Q1 Investment income HK$11.6B; Low vaccination rate in Hong Kong may affect financial center status.
- (HK) More than 40 Hong Kong stocks worth combined HK$140.9B remain suspended from trading after failing to release their FY20 earnings on time (highest number in 5 years) – press.
Other
- SIAL.SG Completes sale leaseback of 11 aircrafts, raises S$2.0B; Continuing to explore ways to raise liquidity.
North America
- DELL Boomi to be acquired by Francisco Partners and TPG for $4.0B cash (as speculated).
- INTC CEO Gelsinger: Chip shortage will last for couple of years before market can catch up with increased demand, will not be anywhere near as focused on buybacks going forward – 60 Minutes.
- LI Reports Apr deliveries 5,539 +111.3% y/y; Expects to capture an increasing share of the EV market with existing and new model launches down the road.
- XPEV Reports Apr deliveries 5,147 +285% y/y; Delivery of LFP battery powered P7 to start in May as planned; To build a new manufacturing base in Wuhan with expected annual capacity of 100K units.
- NIO Reports Apr deliveries 7.1K vehicles, +125.1% y/y.
- (US) US Treasury Sec Yellen said President Biden proposed spending plans [infrastructure and families and education plans] will not fuel inflation, cites the spending plans will be phased in gradually over 10 years – NBC ‘Meet the Press’.
Europe
- Reminder Spain Madrid Governor elections to take place on May 4th, currently “Trump like” Isabel Diaz Ayuso expected to win, who is running under the Right-wing opposition People’s Party (PP).
- (UK) Former PM Cameron expected to ‘give up’ on his plans for a $1.0B UK-China investment fund, as relations between the countries have deteriorated – FT.
Levels as of 01:15ET
- Hang Seng -1.5%; Shanghai Composite closed; Kospi -0.5%; Nikkei225 closed; ASX 200 +0.1%.
- Equity Futures: S&P500 +0.3%; Nasdaq100 +0.1%, Dax +0.3%; FTSE100 -0.1%.
- EUR 1.2036-1.2017; JPY 109.59-109.28; AUD 0.7733-0.7713; NZD 0.7184-0.7163.
- Commodity Futures: Gold +0.3% at $1,773/oz; Crude Oil -0.4% at $63.34/brl; Copper -0.2% at $4.45/lb.
