Thai market down at the open on formal military coup

Economic Data

- (CN) CHINA APR CONFERENCE BOARD LEADING ECONOMIC INDEX M/M: 0.9% V 1.1% PRIOR

- (NZ) NEW ZEALAND MAY ANZ CONSUMER CONFIDENCE INDEX: V 133.5 PRIOR; M/M: -4.4% V +1.1% PRIOR

- (US) NORTH AMERICA APR SEMI BOOK/BILL RATIO: 1.03 V 1.06 PRIOR (7th consecutive month above parity)

Market Snapshot (as of 03:30 GMT):

- Nikkei225 +0.9%, S&P/ASX +0.4%, Kospi -0.1%, Shanghai Composite flat, Hang Seng +0.1%, Jun S&P500 +0.1% at 1,891, June gold flat at $1,295, Jul crude oil flat at $103.72/brl

Highlights/Observations/Insights

- Asian indices are holding up reasonably well considering the geopolitical risk creeping up in different parts of the region. Thailand main SET index was down 2% before a bounce at the open after Thailand Army Chief Prayuth Chan-Ocha announced the military has taken control of the government in a coup following a breakdown in political talks. South Korea's Kospi was also an underperformer earlier amid some overnight saber-rattling from up North - local press reported South Korea returns artillery fire across the border towards a North Korea ship after being attacked near Yeonpyeong Island, but Pyongyang denied those charges. Lastly, Ukraine is finally heading to the polls later this weekend, as leading candidate Poroshenko is hoping for a mandate in the first round to take more earnest steps toward rooting out pro-Russian extremists in the east. Overnight, clashes had reportedly resulted in 16 deaths among the Ukraine military.

- China stocks are up modestly with both the Hang Seng and Shanghai Comp up about 0.1%. China Apr Conference Board index growth slowed to match a 4-month low of 0.9%, as CB resident economist noted the "overall expansion remains weaker than the latter half of 2013 and underlying volatility in the economy has increased", implying "slower trend of economic growth extending into Q3." Property sector companies in China outperformed, as PBoC gov Zhou said the housing market is in good condition when viewed over mid-to-long term, and the housing bubble was only observed in some cities. Earlier, Ministry of Housing official said China home curb exit would depend on market conditions.

- US market close saw mixed earnings from retailers Gamestop, Gap and Aeropostale. The first two were roughly in line with estimates and eked out modest gains afterhours, while the latter was down sharply on terrible Q2 guidance. In tech, HPQ leaked out its earnings in the final hour of the regular trading session, sending shares down by nearly 3%.

Fixed Income/Commodities/Currencies

- (JP) BOJ offers to buy ¥250B in 1-3yr JGB, ¥250B in 3-5yr govt JGB, ¥170B in over 10yr JGB

- (AU) Australia sells A$700M in 4.25% bonds due 2017, avg yield 2.8800%, bid-to-cover 4.54x

- (CN) China Ministry of Finance (MOF) sells 50-yr bonds at 4.67% yield

- USD/CNY: (CN) PBoC sets yuan mid point at 6.1681 v 6.1658 prior setting (weakest setting since Sept 6th; 3rd consecutive weaker setting)

- SLV: iShares Silver Trust ETF daily holdings fall to 10,284 tonnes from 10,320 tonnes prior

- (US) Weekly Fed Balance Sheet Total Assets Week ending May 21st: $4.33T v $4.34T prior; Reserve Bank Credit: $4.28T v 4.29T prior; M1: -$23.3B (biggest decline in 8 weeks) v +$31.6B prior; M2: +$4.6B v +$22.6B prior; M1 y/y change: 10.5% (9-month high) v 10.4% w/w; M2 y/y change: 6.2% v 6.2% w/w

Equities

US markets:

- TFM: Reports Q1 $0.43 v $0.42e, R$431M v $423Me; +11.9% afterhours

- FRSH: Reports Q1 $0.12 v $0.07 y/y, R$25.1M v $19.6M y/y; +3.1% afterhours

- GME: Reports Q1 $0.59 v $0.57e, R$2.00B v $2.02Be; +3.0% afterhours

- GPS: Reports Q1 $0.58 v $0.57e, R$3.77B v $3.78Be; +1.0% afterhours

- ROST: Reports Q1 $1.15 v $1.16e, R$2.68B v $2.71Be; -0.2% afterhours

- YOKU: Reports Q1 -$0.14 v -$0.23e, R$112.7M v $114Me; -1.9% afterhours

- MRVL: Reports Q1 $0.27 v $0.22e, R$958M v $889Me; -2.6% afterhours

- KERX: Keryx Receives Notification of PDUFA Date Extension for Zerenex; delays PDUFA goal date by three months to Sept 7th; -6.6% afterhours

- ARUN: Reports Q3 $0.20 v $0.20e, R$188.8M v $181Me; -7.5% afterhours

- SCVL: Reports Q1 $0.45 v $0.47e, R$235.8M v $239Me; -12.2% afterhours

- ARO: Reports Q1 -$0.52 adj v -$0.72e, R$395.9M v $410Me; -15.0% afterhours

Notable movers by sector:

- Consumer Discretionary: Cochlear Ltd COH.AU -1.4% (analyst action)

- Financials: Greentown China 3900.HK +8.2%, Sunac China 1918.HK +9.7% (Sunac China makes offer for stakes in Greentown China)

- Industrials: Canny Elevator 002367.CN +5.4% (awarded contract)

- Technology: AU Optronics 2409.TW +2.2% (expected to supply panels for new Xiaomi TV); Panasonic Corporation 6752.JP +2.1% (to increase production)

- Utilities: TEPCO 9501.JP +2.2% (to sell power outside service area)