Asia Market Update: Asian markets trade mixed after lack of direction from US stocks; PBoC utilizes 28-day reverse repo ( 1st time since Jan), KRW weakens on gov’t comments


General Trend:

- Hang Seng underperforms amid focus on extradition bill protests

- Chinese equities decline in early trading, markets rose over 2.5% on Tuesday on expectations of more infrastructure spending

- Nikkei trades generally flat; TOPIX Machinery index rises on better than expected machine orders data

- Softbank weighed down by regulatory concerns about Sprint/T-Mobile merger

- Tesla rose in afterhours trading as it held its annual shareholders meeting

- Oil prices decline over 1% during Asian trading amid API oil inventories and comments from UAE Oil Min

- China CPI accelerates on higher fruit and pork prices; Analysts note core inflation remains ‘low’

- PBoC uses 28-day reverse repo amid focus on China’s interbank market, prior gov’t takeover of Baoshang Bank

- HKD and HK money market rates rise amid protests, nothing seen regarding any currency intervention; Some have noted possible cash hoarding by banks ahead of quarter end

- KRW declines after comments from BoK Gov Lee, Lee later asked reporters not to over-interpret his remarks

- Australia consumer confidence declines despite easing by RBA, deepening economic concerns noted

- Aussie declines ahead of upcoming key data out of Australia and China

- Aussie May labor market data due on Thursday

- Japan Economy Min Motegi and USTR Ligthizer are expected to meet on Thursday (June 13th)

- China’s key May data (including industrial production) due for release on Friday


Headlines/Economic Data

Australia/New Zealand

- ASX 200 opened +0.2%

- (NZ) New Zealand May Total Card Spending M/M: 0.2% v 0.4% prior; Retail Card Spending M/M: -0.5% v 0.5%e

- (AU) Reserve Bank of Australia (RBA) Assist Gov Kent makes no comments on monetary policy at the Australian Renminbi Forum Melbourne

- (AU) Australia Jun Westpac Consumer Confidence Index: 100.7 v 101.3 prior; m/m: -0.6% v +0.6% prior (first decline since March)

- (AU) Australia Regulator APRA: to revise some proposals related to bank capital requirements; covers credit cards, personal car loans, and mortgages


- Nikkei 225 opened -0.4%

- (JP) In a Nikkei Op Ed analysts speculate that a "Cold War 2.0" between China and the US could end Japan's economic stagnation and deflation

- 7201.JP Two leading proxy advisory firms,Glass Lewis and Institutional Shareholder Service, urge shareholders to vote against reappointment of CEO Saikawa at AGM June 25th – Nikkei

- (JP) JAPAN APR CORE MACHINE ORDERS M/M: +5.2% V -0.9%E; Y/Y: +2.5% V -5.3%E

- (JP) Japan May PPI (CGPI) M/M: -0.1% v 0.0%e Y/Y: 0.7% v 0.7%e

- (JP) Japan PM Abe: Will exchange options with Iran leaders to ease tensions - comments ahead of trip June 12-14


- Kospi opened flat

- (KR) US President Trump: received a "beautiful" and "very warm" letter Monday from North Korean leader Kim

- (KR) Bank of Korea (BOK) Gov Lee: Will make appropriate policy response to economic changes; BOK needs to prepare various policy scenarios for timely response - prepared statement to mark the central bank’s 69th anniversary

- (KR) South Korea Fin Min Hong: BOK Gov Lee remark hints at policy easing

- (KR) South Korea May Unemployment Rate: 4.0% v 4.1%e v 4.1% prior

China/Hong Kong

- Hang Seng opened -0.7%; Shanghai Composite opened -0.3%

- (CN) CHINA MAY CPI M/M: 0.0% V 0.0%E; Y/Y: 2.7% V 2.7%E (y/y fastest pace since early 2018); Food price CPI y/y: 7.7% v 6.1% prior

- (CN) Pres Trump: reiterates that China wants to make a trade deal 'very badly', will not do China deal unless it's a great deal

- (CN) China National Development and Reform Commission (NDRC), Industry Ministry and the natural resources ministry launch survey of rare earth in seven regions - Xinhua

- (CN) China May retail vehicle sales 1.61M, -12.5% y/y (12th consecutive decline)

- (HK) Hundreds of demonstrators said to storm road near government offices amid protests about extradition bill – financial press

- (CN) China PBoC Open Market Operation (OMO): Injects combined CNY35B in 7-day and 28-day reverse repos v CNY10B in 7-day prior; Net CNY25B drain v CNY50B drain prior

- (CN) China PBoC sets yuan reference rate: 6.8932 v 6.8930 prior

- (HK) Hong Kong legislature to reschedule today's meeting (was supposed to vote on extradition to China bill)

Other Asia

- (IN) In India there are so many unsold cars in India now that 7 of the 10 automakers in India are taking forced holidays - press

- (SG) Singapore Central Bank (MAS) June Economist Survey: Cut 2019 GDP outlook to 2.1% (prior 2.5%); sees 2020 GDP at 2.3%

- (SG) Singapore Apr Retail Sales M/M: 0.5% 1.8%e; Y/Y: -1.8% v -0.2%e

North America

- TSLA CEO Musk: There is a good shot for a record quarter; Model 3 is outselling competitors, no issues with demand; expect to reach volume product by the end of the year - annual meeting comments

- (US) Weekly API Oil Inventories: Crude: +4.9M v +3.5M prior

- UAE Energy Min (OPEC president) Mazrouei: OPEC+ is very close to an agreement extension; it's 'not a challenge' to reach a deal

- (MX) Mexico Foreign Min Ebrard: Have 45 days to show safe third country deal not needed; US wants third country deal discussed if measures fail; reiterates there is no secret agreement


- (CH) EU's Juncker: Swiss framework agreement will NOT be renegotiated

- (UK) UK Brexit Minister Barclay says he supports Boris Johnson in the PM leadership race - UK Press


Levels as of 1:20 ET

- Nikkei 225, -0.2%, ASX 200 +0.1%, Hang Seng -1.8%; Shanghai Composite -0.6%; Kospi -0.2%

- Equity Futures: S&P500 -0.1%; Nasdaq100 -0.2%, Dax -0.4%; FTSE100 -0.3%

- EUR 1.1335-1.1325 ; JPY 108.58-108.43 ; AUD 0.6964-0.6948 ;NZD 0.6589-0.6568

- Gold +0.4% at $1,336/oz; Crude Oil -1.5% at $52.46/brl; Copper -0.1% at $2.666/lb

All information provided by Trade The News (a product of Trade The News, Inc. "referred to as TTN hereafter") is for informational purposes only. Information provided is not meant as investment advice nor is it a recommendation to Buy or Sell securities. Although information is taken from sources deemed reliable, no guarantees or assurances can be made to the accuracy of any information provided. 1. Information can be inaccurate and/or incomplete 2. Information can be mistakenly re-released or be delayed, 3. Information may be incorrect, misread, misinterpreted or misunderstood 4. Human error is a business risk you are willing to assume 5. Technology can crash or be interrupted without notice 6. Trading decisions are the responsibility of traders, not those providing additional information. Trade The News is not liable (financial and/or non-financial) for any losses that may arise from any information provided by TTN. Trading securities involves a high degree of risk, and financial losses can and do occur on a regular basis and are part of the risk of trading and investing.

Analysis feed

Latest Forex Analysis

Editors’ Picks

EUR/USD struggling to hold onto 1.10 as USD gains ground

EUR/USD is trading close to 1.10, as the US dollar gradually advances. Two White House advisers expressed contradicting accounts of US-Sino trade talks, causing confusion. Germany refrained from adding fiscal stimulus.


GBP/USD trades around 1.25 as EU pours cold water on Brexit hopes

GBP/USD is trading around 1.25, off the two-month highs of 1.2582 as EU officials cast doubts about the seriousness of the new UK proposals on Brexit. 


USD/JPY drops to one-week lows on trade war headlines

The USD/JPY fell during the American session following reports that the Montana Farm Bureau said China's delegation has canceled a planned trip to view US agriculture.


Top 3 price prediction Bitcoin, Ripple, Ethereum: Ethereum points to the Moon as Bitcoin takes a break

ETH/USD exceeds $220 and is bidding to lead the market. Bitcoin sets a bear trap and recaptures $10,000. XRP stalls between technical levels and fails to consolidate $0.30.

Read more

Gold climbs further beyond $1500 mark, lacks follow-through

Gold edged higher for the second consecutive session on Friday, albeit remained well within a familiar trading range held over the past two weeks or so.

Gold News

Forex Majors