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Asia trades modestly higher after gains on Wall Street

TradeTheNews.com Staff TradeTheNews.com

Asia Market Update: Asia trades modestly higher after gains on Wall St; China trade data beat ests; US jobs report due later today.

General trend

- Nikkei has remained generally flat [Topix Iron & Steel index rose ahead of earnings from Nippon Steel and JFE; Retail index rises ahead of sales from Fast Retailing; Nintendo declines after results/guidance].

- Shanghai moved modestly higher during the morning session [Banks index rises; IT and Consumer indices lagged].

- Hang Seng extended gain following higher open.

- S&P ASX 200 has risen after the flat open [Resources index outperforms amid record high iron ore prices in China].

- Companies due to report during the NY morning include American Axle, CIGNA, DraftKings, Enbridge, Fluor, Granite Construction, Lear, Madison Square Garden Networks, Nikola, Ventas.

Headlines/Economic Data

Australia/New Zealand

- ASX 200 opened flat.

- (AU) RESERVE BANK OF AUSTRALIA (RBA) STATEMENT ON MONETARY POLICY (SOMP): GROWTH IN WAGE INDEX EXPECTED TO PICK UP TO A LITTLE UNDER 2% IN 2021, BEFORE INCREASING GRADUALLY TO 2.25% BY MID 2023.

- (AU) Australia Apr AIG Performance of Service Index: 61.0 v 58.7 prior (Highest since Oct 2003).

- (AU) Australia sells A$800M v A$800M indicated in 0.25% Nov 2024 bonds, avg yield 0.291%, bid to cover 4.79x.

- (NZ) New Zealand Q2 Inflation Expectation Survey: 2-year Outlook: 2.1% v 1.9% prior.

- (NZ) Reserve Bank of New Zealand (RBNZ) offers to buy a total of NZ$350M in government bonds next week under QE program v NZ$350M prior.

China/Hong Kong

- Hang Seng opened +0.3%, Shanghai Composite +0.2%.

- *(CN) CHINA APR TRADE BALANCE: $42.9B V $27.7Be; Exports Y/Y: +32.3% v 24.1%e.

- *(CN) CHINA APR TRADE BALANCE (CNY): 276.5B V 129.5BE; Exports Y/Y: 22.2% v 12.5%e.

-*(CN) CHINA APR CAIXIN PMI SERVICES: 56.3 V 54.2E (4-month high, 12th consecutive expansion).

- (CN) Reportedly top trade negotiators from China and US Biden administration may hold their first conversation soon to review the phase one trade deal - SCMP.

- (CN) Reportedly Biden Administration is likely to proceed with the Trump-era China investment ban - press.

- (US) Commerce Sec Raimondo: tariff exclusion policy has improved; US will work with allies to enforce entity list through countervailing duties - press interview.

- (CN) US Sec of State Blinken said to be going to keep pressure on China during UN Speech later this week - Press.

- (CN) China Daily: China 2021 CPI to be less than 3.0% target.

- China Construction Bank [939.HK]: Said to be raising mortgage rates for first time and second time home buyers in Shenzhen (China) by 15-35bps; notes other China state banks might also raise mortgage rates - Press.

- (CN) China PBOC Open Market Operation (OMO): Injects CNY100B in 7-day reverse repos v CNY10B in 7-day reverse repos prior; Net drain CNY0B v Net drain CNY40B prior.

- (CN) China PBOC sets Yuan reference rate: 6.4678 v 6.4895 prior.

- (CN) China Ministry of Finance (MOF) sells 3-month and 6-month bills: Sells 3-month bills: Avg Yield: 1.8167% v 1.8483% prior; Sells 6-month bills: Avg Yield: 1.9967% v 2.1881% prior.

Japan

- Nikkei opened flat

- (JP) Japan Mar Labor Cash Earnings Y/Y: +0.2% v -0.2%e; Real Cash Earnings Y/Y: 0.5% v 0.0%e.

- (JP) Japan Apr Final PMI Services: 49.5 v 48.3 prelim (confirms 15 month of contraction).

- (JP) Japan Apr Monetary Base Y/Y: 24.3% v 20.8% prior.

- (JP) Japan Econ Min Nishimura: Govt recommends extension of state of emergency in various prefectures through May 31st (as speculated); To add Fukuoka and Aichi to state of emergency declaration - Press.

- (JP) Japan PM Suga to hold Press conference at 06:00 EST on May 7th.

Korea

- Kospi opened flat.

- (KR) South Korea Mar Current Account (BOP): $7.8B v $7.9B prior; Balance of Goods (BOP): $7.9B v $6.0B prior.

North America

- (US) President Biden to give remarks on Jobs report at 11:30EST on May 7th.

Europe

- (UK) UK PM Johnson and France President Macron to hold talks on fishing dispute in Jersey - Press.

Levels as of 01:20 ET

- Nikkei 225, +0.2%, ASX 200 +0.3% , Hang Seng +0.6%; Shanghai Composite +0.2% ; Kospi +0.8%.

- Equity S&P500 Futures: +0.1%; Nasdaq100 +0.3%, Dax +0.1%; FTSE100 +0.2%.

- EUR 1.2069-1.2059 ; JPY 109.18-108.93 ; AUD 0.7793-0.7772 ;NZD 0.7244-0.7226.

- Gold +0.2% at $1,819/oz; Crude Oil +0.6% at $65.10/brl; Copper +0.8% at $4.6460/lb.

Author

TradeTheNews.com Staff

TradeTheNews.com

Trade The News is the active trader’s most trusted source for live, real-time breaking financial news and analysis.

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