Equity markets generally decline after losses on Wall Street
|General trend
- Recently released US CPI data has been in focus.
- NZD declined ahead of inflation expectations survey.
- Japanese cos. due to report earnings include SoftBank Group, Nissan Motor, NTT, Kirin Holdings, Sapporo, Nikon, Shiseido, Mitsubishi Estate, Nexon, Resona.
- US equity FUTs move higher during Asia; Equity FUTs later pared rise.
- China’s Commerce Ministry (MOFCOM) sometimes holds weekly news conferences on Thurs.
- China’s Apr Bank Lending data might be released this week.
- US PPI data due on Thurs.
- Companies due to report during the NY morning include CyberArk Software, Dillard’s, Tapestry, US Foods, VIZIO.
Headlines/Economic data
Australia/New Zealand
- ASX 200 opened 0.0%.
- (AU) Australia May consumer inflation expectation: 5.0% V 5.2% prior.
- (NZ) New Zealand Fin Min Robertson: Economy is facing capacity constraints and we will set fiscal policy with that in mind nut also must deal with long term challenges.
- CBA.AU Reports Q3 (A$) Cash profit 2.4B v 2.4B y/y.
- (AU) According to latest YouGov poll the Labor Party is projected to win 80 seat majority in upcoming Australia election - Aussie press.
- (NZ) New Zealand Q2 Inflation Expectation Survey (2-year outlook): 3.3% v 3.3% prior (highest since Q1 1991).
- (AU) Australia PM Morrison said strong pay increases will feed further inflation - press.
Japan
- Nikkei 225 opened -1.0%.
- (JP) Bank of Japan (BOJ) Apr Summary of Opinions: Weak yen is positive for the economy when output gap is still large and trend inflation is very low , hard to reach 2% CPI target as expected rise in inflation driven by temporary factors.
- (JP) Japan Apr Bank Lending Y/Y: 0.9% v 0.5% prior; Bank Lending (ex-trusts) Y/Y: 1.1% v 0.5% prior.
- (JP) Japan Mar BoP Current Account: ¥2.55T v ¥1.738Te; Adjust Current Account: ¥1.56T v ¥628.2Be.
- (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 MoF sells ¥900B v ¥900B indicated in 0.7% 30-year JGBs, Avg Yield: 1.0150% v 0.9890% prior, bid-to-cover: 3.0.8x v 3.05x prior.
- 6502.JP Reportedly Blackstone exploring joining KKR bid for Toshiba – press (overnight).
Korea
- Kospi opened -0.9%.
- 005490.KR To invest KRW25T into battery business through 2030 – press.
- (KR) Said that South Korea is looking to eliminate the stock gains tax for most shareholders – Press.
- (KR) North Korea reports it's first case of covid, orders lockdown of all cities, due to the "stealth" COVID outbreak.
China/Hong Kong
- Hang Seng opened -1.4%; Shanghai Composite opened -0.5%.
- (CN) China PBOC Vice Gov Chen: We have guided loan interest rates to decline; will increase support for weak lines, targeted areas, to increase support for real economy.
- (CN) China Senior Party Official Han Wenxiu: Targeting to implement existing policies to support the economy in H1, looking at incremental policies to support growth and will take steps as necessary.
- (CN) China PBOC sets Yuan reference rate: 6.7292 v 6.7290 prior.
- (HK) Hong Kong Monetary Authority (HKMA) purchases ~HK$1.59B on the market as the HKD reaches the weaker end of the peg against the USD [first purchase of HKD to defend peg since 2019].
- (CN) Shanghai has found 2 coronavirus cases outside of the quarantine lockdown zone.
- (CN) China Sec Times: China is unlikely to issue special sovereign bonds despite the pressure on the country.
Other
- (TW) Taiwan Central Bank Gov Yang: H2 GDP outlook may be revised lower; reiterates continues to move towards tightening; TWD will not become the weakest currency in Asia.
North America
- (US) Reportedly Biden administration has drafted an executive order that would give the Department of Justice vast powers to stop foreign adversaries like China from accessing Americans' personal data - press (US late session).
- DIDI Reportedly puts on hold plan for major overseas expansion until 2025 and layoff 50% of workers in UK - UK press.
- DIS Reports Q2 $1.08 v $1.20e, Rev $19.2B v $20.3Be.
- RIVN Reports Q1 -$1.43 adj v -$1.50e, Rev $95M v $114Me; Affirms outlook.
- DOX Reports Q2 $1.54 v $1.24e, Rev $1.15B v $1.12Be.
Europe
- (UK) Apr RICS House Price Balance: 80% v 70%e (highest since June 2021).
- (UK) UK employers are using bonuses to avoid inflationary pay agreements – FT.
Levels as of 00:15ET
- Hang Seng -1.6%; Shanghai Composite -0.0%; Kospi -1.1%; Nikkei225 -1.5%; ASX 200 -1.6%.
- Equity Futures: S&P500 +0.1%; Nasdaq100 +0.2%, Dax -1.9%; FTSE100 -1.4%.
- EUR 1.0530-1.0508; JPY 130.05-129.51; AUD 0.6953-0.6889; NZD 0.6302-0.6247.
- Commodity Futures: Gold -0.2% at $1,850/oz; Crude Oil -1.5% at $104.14/brl; Copper -1.7% at $4.14/lb.
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