Asian Equity Markets Trade Higher After US Stocks Mostly Gained

Jun 07 19, 05:55 GMT

General Trend:

Resources, energy, utilities and REIT companies rise in Australia
Automakers, securities brokers and electric appliance firms are among the gainers in Japan
Japan’s wages declined for the 4th straight month in April
US Treasury Sec Mnuchin is expected to meet with China PBoC Gov Yi Gang at this weekend’s G20 Finance Ministers/Central Bank Governors meetings
China PBoC Gov: [This weekend’s] trade talks with US Treasury Sec Mnuchin at G20 to be ‘difficult’; no yuan exchange rate number more important than others, trade war would have temporary depreciation effect on CNY
Japan Finance Min and US Treasury Sec Mnuchin are speculated to discuss possible currency clause related to trade talks at the upcoming G20 meetings
US monthly payrolls data due later today

Headlines/Economic Data

Australia/New Zealand

ASX 200 opened +0.5%
(AU) AUSTRALIA APR HOME LOANS M/M: -1.1% V 0.0%E
(AU) Australia May AiG Performance of Construction Index: 40.4 v 42.6 prior (6-year low, 9th consecutive month of contraction)
(AU) RBA: Adjusts committed liquidity facility (CLF), cites rise in the volume of high quality liquid assets securities over recent years
(NZ) NEW ZEALAND Q1 VOLUME OF ALL BUILDINGS Q/Q: 6.2% V 1.1%E

China/Hong Kong

Shanghai Composite and Hang Seng are closed for holiday
(US) US President Trump: decision on additional China tariffs will be made after G20 meeting (June 28-29), will make decision in the next two weeks
(CN) China MOF spokesperson: U.S. tariff deadline extension will not change tariff date [Comments on US tariff deadline extension to Jun 15th]
(CN) China Commerce Ministry (MOFCOM) Spokesman Gao Feng: Will release list of ‘unreliable’ foreign companies in the near future
(CN) China National Development and Reform Commission (NDRC) holds meeting with local govts related to rare earths – press

Japan

Nikkei 225 opened +0.4%
(JP) JAPAN APR LABOR CASH EARNINGS Y/Y: -0.1% V -0.7%E; REAL CASH EARNINGS Y/Y: -1.1% V -1.5%E (4th consecutive decline)
(JP) Japan Apr Household Spending Y/Y: 1.3% v 2.6%e
(JP) Japan May Foreign Reserves: $1.31T v $1.29T prior
(JP) Bank of Japan (BOJ) announcement related to daily bond buying operation: Increases 10-25 yr JGB purchases to ¥200B from ¥160B (in line with prior BOJ comments)

Korea

Other

(ID) Indonesia Central Bank Deputy Gov Waluyo: Rate cut is not a matter of if but when

North America

(MX) Mexico Foreign Min Ebrard: Talks on tariffs and migration to continue on Fri; confirms will deploy National Guard to border with Guatemala to contain migrants; talks are advancing but no agreement yet
(MX) Mexico and US considering outlines of deal that could boost Mexico immigration enforcement efforts andgive US more latitude to deport asylum-seekers – Washington Post
(MX) US said to be considering delaying Mexico tariffs as implementation date approaches; Mexican officials seek more time for talks – press
(MX) White House Press Sec Sanders: US is still moving ahead with Mexico tariffs on Monday at this time
(US) Fed’s Williams (moderate, voter): We must remain prepared to adjust views on where economy is going to go; may need to keep rates the same or may need to adjust them

Europe

(UK) Germany and most other EU governments will back another delay to Brexit regardless of who becomes the new UK PM – UK Press
(UK) Labour Party reportedly won election in Peterborough – UK Press

Levels as of 1:20 ET

Nikkei 225, +0.5%, ASX 200 +0.7%, Hang Seng closed; Shanghai Composite closed; Kospi +0.1%
Equity Futures: S&P500 +0.1%; Nasdaq100 +0.1%, Dax +0.3%; FTSE100 +0.2%
EUR 1.1286-1.1267 ; JPY 108.53-108.31; AUD 0.6983-0.6972 ;NZD 0.6628-0.6614
Gold -0.4% at $1,337/oz; Crude Oil +1.3% at $53.25/brl; Copper +0.3% at $2.656/lb