Asian Equity Indices Trade Mixed

Jun 03 21, 06:51 GMT

General Trend

Most indices in Asia improved after the openings; US markets ended fractionally higher.
S&P ASX 200 again traded at a fresh record high, index later pared gain [Energy and Financial indices are among the outperformers; Wesfarmers weighs on Consumer Discretionary index].
Nikkei rebounded after the modestly lower open [Automakers move higher; Topix Information & Communication and Electric Appliances indices also rise; Fast Retailing drops after monthly sales report].
Shanghai Composite ended the morning session higher by less than 0.5% [Property and Consumer Staples indices rise].
Hang Seng has lagged despite the higher open [Property and Financial firms trade generally lower].
Australia’s 10-yr yield declines amid data, drop in UST yields and focus on July RBA meeting.
Japan again sold 10-yr JGBs at the lowest bid to cover since 2015.
China’s Commerce Ministry (MOFCOM) sometimes holds weekly news conferences on Thursday.
PBOC Gov Yi Gang is expected to speak at the Virtual Green Swan Conference [being held June 2-4th].
US ADP data are due during NY morning.
Companies due to report during the NY morning include CIENA, Conn’s, CooTek, Duluth Holdings, Express, Hovnanian, SecureWorks, J.M. Smucker, Tuniu, Toro.

Headlines/Economic Data

Australia/New Zealand

ASX 200 opened 0.0%.
WES.AU Guides FY21 (A$) Capex 650-700M; Online growth moderating after in store traffic increases – strategy day.
(AU) Australia May Final PMI Services: 58.0 v 58.2 prelim (confirms 9th month of expansion).
(AU) Australia PM Morrison: To provide support for coronavirus hot spots that are in lockdown for more than 7 days; temporary Covid disaster payment, to be made on a week to week basis. Payment of A$500 for those who work more than 20 hours or A$325 for those who work less than 20 hours.

Japan

Nikkei 225 opened -0.2%.
(JP) Japan PM Suga is likely to call for a snap election in the fall following the Olympics, may compile new stimulus package before election – Press.
(JP) Japan Chief Cabinet Sec Kato: Not considering an extra budget at this time.
(JP) Japan Investors Net Buying of Foreign Bonds: -¥1.09T v -¥550.7B prior; Foreign Net Buying of Japan Stocks: +¥181.3B v -¥223.2B prior.
(JP) Japan May Final PMI Services: 46.5 v 45.7 prelim (confirms 16th month of contraction).
(JP) According to recent Asahi poll 83% of Japan public is against holding Olympics (50 days before games start).
9984.JP To sell ¥405B in 2.75% Subordinated Bonds Due 2056.
4503.JP To offer early retirement incentives for employees, to cut ~450 positions under program, will guide impact on FY21/22 once known.
(JP) Japan MoF sells ¥2.6T v ¥2.6T indicated in 0.1% 10-year JGBs; avg yield 0.0780% v 0.0720% prior; bid to cover: 2.94x v 3.04x prior [btc lowest since 2015].

Korea

Kospi opened 0.0%.
(KR) South Korea May Foreign Reserves: $456.5B v $452.3B prior (record high).
(KR) South Korea Fin Min Hong: Have deep concerns about one sided expectations that housing prices will likely continue to rise in H2, housing prices may stabilize as the government has a strong commitment to curbing the rise – Yonhap.
(KR) South Korea Govt said to be seeking a 6.3% increase in 2022 budget – Press.

China/Hong Kong

Hang Seng opened +0.2%; Shanghai Composite opened -0.1%.
(CN) China Sec Journal: China PBOC expected to increase liquidity injections during June to meeting institutional reasonable demand.
(CN) US President Biden expected to amend blacklist of China military linked companies soon – press.
(CN) CHINA MAY CAIXIN PMI SERVICES: 55.1 V 56.2E (13th consecutive expansion); PMI Composite: 53.8 v 54.7 prior (13th consecutive expansion).
(HK) Hong Kong May PMI (Whole Economy): 52.5 v 50.3 prior (highest since Feb 2014).
(CN) China PBOC sets Yuan reference rate: 6.3811 v 6.3773 prior.
(CN) China PBOC Open Market Operation (OMO): Injects CNY10B in 7-day reverse repos v CNY10B in 7-day reverse repos prior; Net CNY0B v Net CNY0B prior.

Other

(SG) Singapore May PMI (whole economy): 54.4 v 51.8 prior (highest since Feb, 6th consecutive expansion).
(IL) Israel opposition leader Yair Lapid notifies the President that he has formed a coalition with Naftali Bennett for a govt; move would oust PM Netanyahu after 12 years in power – press.

North America

Europe

(EU) EU reportedly considering a carbon tariff on cement, aluminum, fertilizers, electricity, and steel imports – press.
(IE) Ireland May PMI Services: 62.1 v 57.7 prior (5th month of expansion, highest since March 2016); PMI Composite: 63.5 v 58.1 prior (record high).

Levels as of 01:15ET

Hang Seng -0.3%; Shanghai Composite +0.5%; Kospi +0.9%; Nikkei225 +0.5%; ASX 200 +0.7%.
Equity Futures: S&P500 +0.1%; Nasdaq100 +0.1%, Dax +0.1%; FTSE100 +0.3%.
EUR 1.2216-1.2201; JPY 109.74-109.55; AUD 0.7755-0.7738; NZD 0.7242-0.7220.
Commodity Futures: Gold -0.2% at $1,906/oz; Crude Oil +0.5% at $69.20/brl; Copper -0.1% at $4.59/lb.