Equity markets trade generally higher
|Asia Market Update: RBA minutes in focus; Australia Q1 Wage data is due on Wed (May 18th); Equity markets trade generally higher; Big US retailers to report results.
General trend
- RBA released May Minutes: An argument for an increase of 40 basis points could be made given the upside risks to inflation and the current very low level of interest rates; Members agreed that the preferred option was 25 basis points; highly probable that further rate increases would be needed.
- Commodity currencies trade modestly higher; AUD and AU yields rose following the RBA minutes.
- China is currently holding a meeting on the digital economy; Hang Seng TECH index rises over 3.5%; JD.com to report later today.
- Shanghai confirms that there is no community spread in all 16 of its districts.
- CVC ended M&A talks with Australian logistics firm Brambles, cited market volatility [the transaction was speculated at A$20B].
- Japan Q1 prelim GDP data is due on Wed.
- Companies due to report during the NY morning include Home Depot, HUYA, JD.com, Walmart.
Headlines/Economic data
Australia/New Zealand
- ASX 200 opened %.
- (AU) Reserve Bank of Australia (RBA) May minutes: Board determined conditions that it had earlier set for an increase in the cash rate had been met and further rate increases would likely be needed.
- JHX.AU Reports FY22 Net $459M v $263M y/y; adj EBIT $816M v $629M y/y; Rev $3.6B v $2.9B y/y; Affirms FY23 guidance.
- BXB.AU Updates on talks with CVC, no offer to be made; Will continue to explore other options.
- (AU) Australia ANZ Roy Morgan Weekly Consumer Confidence: 89.3 v 90.5 prior [lowest since Aug 2020].
Japan
- Nikkei 225 opened 0.0%.
- (JP) Bank of Japan (BOJ) Deputy Gov Amamiya: Current inflation largely led by a rise in energy prices; Inflation expectations may change on commodities.
- (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 Fin Min Suzuki: Need to reduce the debt to GDP ratio in a stable manner, reiterates rapid FX moves are not desirable; BOJ policy isn't meant to influence FX rates.
- (JP) Japan to allow small groups of tourists to visit starting this month, as part of small trial before border reopening.
Korea
- Kospi opened +0.3%.
- (KR) According to think tank, Korea Economic Research Institute, 43% of listed companies cut their workforce in 2021 – Yonhap.
- (KR) South Korea Fin Min Choo: No plan for additional extra budgets unless there are large shocks in the economy.
China/Hong Kong
- Hang Seng opened +1.2%; Shanghai Composite opened +0.1%.
- (CN) CPPCC National Committee's Committee for Economic Affairs [top political advisory body] holding symposium on digital economy and sustainable and healthy development during May 17th, Vice Premier Liu to speak at meeting - Press.
- (CN) Shanghai confirms that there is no community spread in all 16 of its districts.
- (HK) Hong Kong Chief Exec Lam: Will go ahead with planned easing of covid curbs on May 19th.
- (CN) Shanghai Sec News: PBOC maintaining the MLF rate unchanged suggests that it will keep liquidity ample.
- (CN) China Hangzhou has loosened its restrictions on second hand home purchases, to allow families with 3 children to buy more homes.
- (CN) Beijing reports 52 coronavirus cases v 39 prior; Shanghai reported 0 cases outside quarantine area v 0 prior (3rd consecutive day of zero cases).
- (CN) China PBOC sets Yuan reference rate: 6.7854 v 6.7871 prior.
- (CN) China PBOC Open Market Operation (OMO): Sells CNY10B in 7-day reverse repos v CNY10B prior; Net CNY0B v Net inject CNY0B prior.
Other
- (SG) Singapore apr non-oil domestic exports M/M: -3.3% V -2.1%E; Y/Y: 6.4% V 6.5%E; Electronic Exports Y/Y: 12.8% v 11.5% prior.
North America
- TSLA Shanghai plant capacity utilization >45%.
- AAPL Said to have told app developers that it is implementing a new feature that automatically increases charges on customers when app prices increase - Press.
Levels as of 01:00ET
- Hang Seng +2.6%; Shanghai Composite +0.4%; Kospi +0.8%; Nikkei225 +0.4%; ASX 200 +0.3%.
- Equity Futures: S&P500 +0.4%; Nasdaq100 +0.7%, Dax +0.9%; FTSE100 +0.4%.
- EUR 1.0453-1.0429; JPY 129.45-128.84; AUD 0.7010-0.6967; NZD 0.6334-0.6305.
- Commodity Futures: Gold +0.5% at $1,822/oz; Crude Oil -0.3% at $111.45/brl; Copper +0.6% at $4.23/lb.
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