Asia Market Update: Modest moves seen in Asia ahead of US CPI, ECB decision; Asian 10-yr gov’t bond yields track decline in UST yield; China PBOC Gov suggested inflation will slow in 2021.

General Trend

- Asian equity indices are generally off of the session lows.

- Nikkei rebounded from the opening decline [Topix Marine Transportation index outperforms; Banks index drops amid lower 10-yr UST yield].

- Shanghai Composite ended the morning session higher by 0.8% [Industrials index rises over 2%]; China Three Gorges Renewables rises over 40% in trading debut.

- Hang Seng has remained modestly higher [Property index rises].

- S&P ASX 200 has moved higher after the flat open [REIT and utility indices outperform on the drop in bond yields; Energy and Resources indices decline].

- Taiwan Semi may issue monthly sales today.

- China/US officials continue to hold talks [few specifics seen].

- China’s Commerce Ministry (MOFCOM) sometimes holds weekly news conferences on Thursday.

- Companies due to report during the NY morning include Fuel Cell Energy, Aurora Mobile, Signet Jewelers.

Headlines/Economic Data

Australia/New Zealand

-ASX 200 opened 0.0%.

- (NZ) New Zealand Commerce Min Clark: The govt has granted a license to a new share trading market, designed as a gateway to the NZX for the small-to-medium-sized enterprises.

- (AU) Reserve Bank of Australia (RBA): Excess cash at exchange settlement (ES) accounts at A$249.5B v A$245.2B prior (Record high).

- (AU) Australia Jun Consumer Inflation Expectations: 4.4% v 3.5% prior.

- (NZ) New Zealand Govt: New builds will be exempt from proposed changes in tax law.

- (AU) Australia PM Morrison: Confirms Australia seeks WTO resolution on China wine tariffs.

- (AU) Australia AOFM (debt agency) CEO Nicholl: Not in a rush to join the world in Green bond offerings, case based on cost isn't there yet and PM has not set a net-zero emissions date.


-Nikkei 225 opened -0.2%.

- (JP) Japan May PPI (CGPI) M/M: 0.7% v 0.5%e; Y/Y: 4.9% v 4.5%e.

- (JP) According to analysts Bank of Japan (BOJ) will leave the rate and policy unchanged at next week's meeting, but expected to extend aid to pandemic impacted businesses.

- (JP) Reportedly a growing number of Japanese officials expect PM Suga to call for a snap election in Sept and expected to direct ministries to consider a major economic stimulus package as early as this summer – Nikkei.

- (JP) Japan Govt to pay ¥2B in subsidies to companies that make COVID drugs - Japan press.


-Kospi opened at 0.0%.

- (KR) Bank of Korea (BOK) Senior Official: One or two rate hikes is not tightening.

- 017670.KR Announces split off plan for a new investment company to be called SKT Investment; Announces 5 for 1 stock split.

- (KR) South Korea May Bank Lending to Households (KRW): 1,024.1T v 1,025.7T prior (1st decline since Jan 2014).

- (KR) Bank of Korea (BOK) Quarterly Monetary Policy Report: Imbalances still not likely to hurt the financial system but may hurt growth potential; Reiterates to keep policy accommodative for now; inflation may accelerate faster than expected but will meet inflation (CPI) target in the medium term.

China/Hong Kong

-Hang Seng opened +0.2%; Shanghai Composite opened -0.1%.

- (CN) China PBOC Gov Yi Gang: Sees CPI in 2021 <2.0%; China Potential Economic growth has decreased to a certain extent, China economy growth model by investment capital and labor will be difficult to maintain with aging population trend - Comments at Lujiazui Forum.

- (CN) China Banking and Insurance Regulatory Commission (CBIRC) Chairman Guo: Global CPI higher than expected, China's policy prevented world economy from recession.

- (CN) China Banking and Insurance Regulatory Commission (CBIRC) told major banks [financial institutions with at least CNY300B of adjusted on-balance and off-balance assets] to make their recovery and resolution plans.

- (CN) China SAFE: Current account surplus is at a reasonable range; 2-way fluctuation in Yuan is normal.

- (CN) An analyst at StoneX in Shanghai notes they think the China govt has the ability to influence commodity prices in the short term as part of inflation management – press.

- (CN) China PBOC sets Yuan reference rate: 6.3972 v 6.3956 prior.

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

- (CN) China govt watching challenges faced by exporters, including yuan rate and prices.

- (CN) Wuhan institute asserts that no staff had contracted coronavirus (in 2019 outbreak) - Press.

- (CN) China State Council: Reiterates stance to keep economy within a reasonable range.


- (TW) US and Taiwan reportedly to hold high-level trade talks as soon as tomorrow – press.

North America

- GME Reports Q1 -$0.45 v -$0.67e, Rev $1.28B v $1.18Be; intends to file to sell 5M shares from time to time (7% of shares outstanding).

- COIN To expand the number of states where US customers can borrow cash using Bitcoin as collateral.

- (US) Lawmakers said to be drafting 5 antitrust bills targeting big tech, could be introduced this week - press.


- (UK) May RICS House Price Balance: 83% v 77%e (multi-decade high).

- (G7) Draft G7 communique: Will commit to paying for 1B extra COVID vaccines, will call for a new study into origins of COVID, call on Russia to crack down on ransomware, cyber attacks-press.

- (SE) Sweden Fin Min Andersson: Need to talk about tax deduction on mortgages - local press.

Levels as of 01:15ET

- Hang Seng +0.4%; Shanghai Composite +0.9%; Kospi +0.5%; Nikkei225 +0.3%; ASX 200 +0.5%.

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

- EUR 1.2181-1.2163; JPY 109.67-109.52; AUD 0.7738-0.7722; NZD 0.7186-0.7166.

- Commodity Futures: Gold -0.4% at $1,888/oz; Crude Oil -0.6% at $69.55/brl; Copper -0.2% at $4.51/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.

Feed news

Latest Forex Analysis

Latest Forex Analysis

Editors’ Picks

EUR/USD struggles around 1.19 amid Fed-fueled dollar strength

EUR/USD is under pressure around 1.19, as the dollar remains on the offensive following the Federal Reserve's hawkish decision on Wednesday. The bank is set to debate cutting down its bond buys and signaled raising rates sooner than anticipated. 


GBP/USD tumbles below 1.39 on weak UK data, dollar strength

GBP/USD has been extending its decline, sliding under 1.39. UK retail sales disappointed with -1.4% in May and the rapid spread of the Delta variant in the UK is also weighing on sterling. The US dollar remain robust after the Fed's hawkish decision.


GBP/USD tumbles below 1.39 on weak UK data, dollar strength

GBP/USD has been extending its decline, sliding under 1.39. UK retail sales disappointed with -1.4% in May and the rapid spread of the Delta variant in the UK is also weighing on sterling. The US dollar remain robust after the Fed's hawkish decision.


Ripple fears of a major decline are unwarranted

XRP price remains locked in a range between the psychologically important $1.00 and the neckline of a multi-year inverse head-and-shoulders pattern at $0.76. However, a lack of technical clues leaves frothy forecasts on the sideline until directional confirmation can be gleaned from the charts.

Read more

Where next for markets after the Fed shocker

The Fed surprised markets with an abrupt hawkish shift that has triggered substantial volatility in currency markets. Valeria Bednarik and Yohay Elam explain the surprise, discuss technical level, the next moves in FX and beyond.

Read more