Asian indices trading with the tailwind of a broad-based rally in US markets on Thursday

US Session Highlights

- (US) APR PHILADELPHIA FED BUSINESS OUTLOOK: 22.0 V 25.5E (lowest since Dec)

- (US) INITIAL JOBLESS CLAIMS: 244K V 240KE; CONTINUING CLAIMS: 1.98M V 2.02ME (lowest continuing claims level since Apr 2000)

- (US) MAR LEADING INDEX: 0.4% V 0.2%E

- (US) WEEKLY EIA NATURAL GAS INVENTORIES: +54 BCF VS. +47 TO +49 BCF EXPECTED RANGE

- (US) Fed's Powell (moderate, voter): economy is at or close to full employment; economy is improving but all is not well

- US equities opened the morning higher and strengthened throughout the session to close just off the day's highs. Industrials and financials led the outperformers, while utilities and telecom lagged. Treasury yields gained as investors maintained a risk-on appetite. The U.S. Dollar Index rose slightly, advancing against the yen, while gold was little changed.

US markets on close: Dow +0.9%, S&P500 +0.8%, Nasdaq +0.9%

- Best Sector in S&P500: Financials

- Worst Sector in S&P500: Utilities

- Biggest gainers: ADS +8.3%; DGX +6.0%; NAVI +6.0%

- Biggest losers: URI -5.2%; DHR -4.1%; EBAY -3.9%

- At the close: VIX 14.1 (-0.8pts); Treasuries: 2-yr 1.20% (+2bps), 10-yr 2.24% (+4bps), 30-yr 2.89% (+3bps)

US movers afterhours

- PFPT Reports Q1 $0.12 v $0.09e, R$113.3M v $110Me; Guides Q2 $0.11-0.13 v $0.11e, R$118-120M v $119Me; +9.2% afterhours

- V Reports Q2 $0.86 v $0.79e, R$4.48B v $4.30Be; announces $5B buyback (2% of market cap); Affirms FY17 op margin mid 60%s (prior mid 60's%); +2.4% afterhours

- MAT Reports Q1 -$0.32 adj v -$0.17e, R$814.6M v $810Me; Total net sales (cc) -15% y/y; -6.8% afterhours

Key economic data

- (JP) JAPAN APR PRELIMINARY PMI MANUFACTURING: 52.8 V 52.4 PRIOR (8th month of expansion)

- (NZ) NEW ZEALAND MAR ANZ CONSUMER CONFIDENCE INDEX: 121.7 V 125.2 PRIOR; M/M: -2.8% (3rd straight decline) V -1.7% PRIOR

- (KR) South Korea Apr First 20-days Exports y/y: 28.4% v 14.8% prior; Imports y/y: 16.4% v 29.4% prior

Asia Session Notable Observations, Speakers and Press

- Asian indices trading with the tailwind of a broad-based rally in US markets on Thursday. The gains were particularly impressive considering ISIS terror activity in France on the eve of the elections - nonetheless, today's Elabe poll shows Macron widening his lead on far-right candidate Le Pen in both primary and run-off contests. Traders point to better earnings performance as well as the pledge by Treasury Sec Mnuchin to pass tax reform this year, promising to unveil the sweeping legislation very soon.

- In economic data, Japan prelim Apr Manuf PMI marked 8th straight month of expansion, with both New Export Orders and Employment components showing conditions improving at a faster rate. New Zealand ANZ consumer confidence fell for the 3rd straight month, as ANZ economist pointed to the slowdown in the property market in Auckland as a likely culprit.

China

- (CN) PBOC Gov Zhou met with US Economic Council Cohn and discussed financial cooperation - press

- (CN) China banking regulator (CBRC) said to have requested a check of mutual guarantee risks - Chinese press

- (CN) China Social Security Fund chief / former Fin Min Lou: Household leverage ratio has risen above 50% - press

Japan

- (JP) BOJ said to plan to raise its FY17/18 GDP target from 1.5% to upper 1% range as part of its policy decision next week - Japan press

- (JP) Japan Fin Min Aso: No issue with US Pres Trump's comments that USD is too strong; Discussed Japan efforts to raise potential growth rate and global economy at G20 - press

- (JP) Japan PM Abe sends ritual offering to Yasukuni shrine - Japan press

Australia

- CBA raises fixed interest rates on investor loans by 25-50bps and interest-only home loans by 25bps - SMH

- (NZ) Real Estate Institute of New Zealand (REINZ) latest data suggest New Zealand rural property market has performed well - press

Korea

- (KR) North Korea warns of "super-mighty preemptive strike" following recent comments by State Sec Tillerson

- (KR) South Korea to consider all measures, including WTO complaint, in response to US protectionism - press

- (KR) Pres Trump said to have "absolute confidence" that China Pres Xi to work very hard to defuse North Korea tensions - press

Asian Equity Indices/Futures (00:00ET)

- Nikkei +0.7%, Hang Seng flat, Shanghai Composite +0.1%, ASX200 +0.7%, Kospi +0.9%

- Equity Futures: S&P500 flat; Nasdaq +0.1%, Dax flat, FTSE100 +0.2%

FX ranges/Commodities/Fixed Income (00:00ET)

- EUR 1.0707-1.0721; JPY 109.18-109.42; AUD 0.7515-0.7535; NZD 0.6983-0.7010

- June Gold -0.2% at 1,281/oz; June Crude Oil +0.1% at $50.75/brl; May Copper +0.2% at $2.55/lb

- SPDR Gold Trust ETF daily holdings fall 6.5 tonnes to 854.3 tonnes; first decline since Mar 30th

- iShares Silver Trust ETF daily holdings fall to 10,149 tonnes from 10,178 tonnes prior

- (CN) PBOC SETS YUAN MID POINT AT 6.8823 V 6.8792 PRIOR

- (CN) China Finance Min sells 30-yr bonds at 3.899% v 3.87%e; Bid-to-cover 1.62x

- (CN) PBOC to inject combined CNY100B v CNY100B prior in 7-day, 14-day and 28-day reverse repos, 4th straight injection; For the week, injected CNY170B v CNY70B in the prior week

- (AU) Australia MoF (AOFM) sells A$600M in 2.0% 2021 Bonds; avg yield: 2.044%; bid-to-cover: 4.96x

Asia equities / Notables / movers by region

Australia:

- CC Amatil (CCL) -9.8%; soft H1 guidance

- Duet Group (DUE) +9.6%; CKI buyout approved

- Oz Minerals (OZL) +2.7%; Q1 production

Hong Kong:

- ASM Pacific Technology Limited (522) +6.8%; Q1 results

- China Yongda Automobile Services (3669) +4.9%; Q1 results

- China National Materials Company Limited (1893) +2.6%; positive guidance

- China Mobile (941) -0.2%; Q1 results

Japan:

- Fujifilm (4901) -4.3%; To delay earnings announcement

- Toshiba (6502) -5.0%; Four domestic companeis file lawsuit for compensation; chairman of SK Hynix to meet with board within days

- Hino Motors (7205) +3.8%; FY16 results speculation

- Tokyo Seimitsu (7729) +3.8%; FY16 results speculation