Asia Market Update: USD trades generally weaker ahead of upcoming US data; Asian equity markets rise; Hang Seng supported by earnings from Alibaba and Baidu.
General trend
- 2-yr UST yield extends drop ahead of US data.
- Hang Seng TECH index opened higher by over 4% on earnings.
- US equity FUTs trade slightly lower.
- Bank of Japan (BOJ) Gov Kuroda: Unless energy prices drop sharply, core CPI likely to remain ~2.0% for ~1-year.
- Japan PM Kishida: Steps to avoid outflows from Japan such as renewable energy promotion, inbound tourism, will help stabilize fx moves.
- Companies due to report during the NY morning include Big Lots, Hibbett, Pinduoduo.
Headlines/Economic data
Australia/New Zealand
- ASX 200 opened flat.
- (AU) ANZ Senior economist expects Australia Fair Work Commission to announce a 4.0-4.5% in the minimum wage.
- (AU) Australia sells A$800M v A$800M indicated in 1.50% Jun 2031 bonds; Avg Yield: 3.2244%; bid-to-cover 3.42x.
- (AU) Australia Apr Retail Sales M/M: 0.9% v 1.0%e.
- (NZ) Reserve Bank of New Zealand (RBNZ): Additional NZ$300M lent under Funding for Lending Program; total lending under the program at NZ$10.5B.
Japan
- Nikkei 225 opened +1.3%.
- (JP) Japan May Tokyo CPI Y/Y: 2.4% V 2.5%E; CPI (EX-FRESH FOOD) Y/Y: 1.9% V 2.0%E.
- (JP) Japan PM Kishida: Steps to avoid outflows from Japan such as renewable energy promotion, inbound tourism, will help stabilize fx moves.
- SONY President: Expects global shipment delays and shortage of chips to continue this financial year; To expand smartphone sensor fabrication in Nagasaki plant.
- (JP) Said that the Japan Govt will look into steps to take on the tight energy market - Press.
- (JP) Bank of Japan (BOJ) Gov Kuroda: Unless energy prices drop sharply, core CPI likely to remain ~2.0% for ~1-year.
- (JP) Japan Fin Min Suzuki: Important to secure a necessary defense budget; Funding for a decarbonized society is key.
- (JP) Bank of Japan (BOJ) offers to buy 5-10 year JGBs at fixed rate of 25bps; Opens window to buy unlimited amount of 10-year JGBs at 0.25% [as expected].
- (JP) Japan Chief Cabinet Sec Matsuno: Will appropriately consider any further border reopening.
Korea
- Kospi opened +1.1%.
- Samsung [005930.KR] To reduce smartphone production due to weak demand; may cut 2022 smartphone output target by 10% - Korea press.
China/Hong Kong
- Hang Seng opened +2.6%; Shanghai Composite opened +0.4%.
- (CN) China Apr YTD Industrial Profits Y/Y: 3.5% v 8.5% prior.
- (CN) SCMP: Recent speech from China Premier Li shows a clear urgency to gov't efforts to avoid recession, cites analysts.
- (CN) China PBOC Open Market Operation (OMO): Sells CNY10B in 7-day reverse repos v CNY10B prior; Net CNY0B v Net CNY0B prior.
- (CN) China PBOC sets Yuan reference rate: 6.7387 v 6.6550 prior.
- (CN) Sec of State Blinken: Under President Xi China has become more repressive at home; US is determined to avoid a new Cold War; US will respond positively if China takes concrete action on concerns.
- (CN) China Ministry of Finance (MOF) Sells 3-month bills: avg yield 1.4003% v 1.7419% prior.
- (CN) Shanghai first 3-weeks of May power use >78% y/y.
Other
- (SL) Sri Lanka said to be in talks for a few hundred million dollar loan from China - FT.
North America
- TSLA CEO Musk: Possible economic downturn is actually a good thing.
- (US) Supreme Court allows Biden Admin to use new cost estimate for impact of greenhouse gases when issuing regulations.
- (US) NY Fed takes $2.01T in RRP program at 0.80%; 95 participating and accepted counterparties.
Europe
- (UR) US is said to be readying to send Ukraine advanced, long-range rocket systems that are now top request from Ukrainian officials - CNN.
- (UR) Ukraine Foreign Min Kuleba: Military situation in eastern Ukraine is even worse than people say it is.
- (UK) Chancellor of the Exchequer (Fin Min) Sunak outlines details of support package and windfall tax on energy company profits.
Levels as of 01:20 ET
- Nikkei 225, +0.6%, ASX 200 +1.1% , Hang Seng +2.6%; Shanghai Composite +0.5% ; Kospi +1%.
- Equity S&P500 Futures: -0.1%; Nasdaq100 -0.1%, Dax +0.1%; FTSE100 -0.3%.
- EUR 1.0765-1.0716 ; JPY 127.24-126.67 ; AUD 0.7145-0.7084 ;NZD 0.6524-0.6467.
- Gold +0.2% at $1,851/oz; Crude Oil +0.1% at $114.19/brl; Copper +0.4% at $4.2905/lb.
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.
Recommended Content
Editors’ Picks
AUD/USD consolidates the rebound above 0.6450
AUD/USD clings to recovery gains above 0.6450 in the Asian session on Monday. A pause in the US Dollar uptrend supports the pair but the further rebound appears eluisive amid renewed geopolitical tensions between Russia and Ukraine. Fedspeak is next in focus.
USD/JPY regains 154.00 and beyond amid BoJ's Ueda-led volatility
USD/JPY has recaptured 154.00 in Asian trading on Monday after BoJ Governor Kazuo Ueda's comments injected volatility around the Japanese Yen. Ueda offered no clues on a likely December interest rate hike, weigihing heavily on the Yen while triggering a big USD/JPY jump.
Gold bounces off key support on renewed Russia-Ukraine geopolitical risks
Gold price (XAU/USD) extends its rebound to test $2,600 early Monday, snapping a six-day losing streak. The latest uptick in Gold price could be attributed to rsurfacing Russia-Ukraine geopolitical tensions after US authorizes Ukraine to use long-range US weapons to strike inside Russia.
Dollar rally 2024: Epic bull run or dangerous bubble?
Dear, The US dollar is surging—how high can it go? Is this unstoppable growth or a bubble about to burst? Discover the 5 key factors fueling this rally Watch, learn, and get ready for what’s next! .
Week ahead: Preliminary November PMIs to catch the market’s attention
With the dust from the US elections slowly settling down, the week is about to reach its end and we have a look at what next week’s calendar has in store for the markets. On the monetary front, a number of policymakers from various central banks are scheduled to speak.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.