Asia Market Update: Asian equity markets mixed despite gains on Wall St; Chinese shares pare some of the recent gains; Aussie 3-yr yield trades near 1.20% ahead of upcoming key events


General Trend:

- China State Media Commentary: China may have no interest in continuing trade talks with the US for now; sees little "sincerity" in Pres Trump's approach

- USD/CNH trades above 6.94 for the first time since late Nov 2018; yuan weakens amid PBoC fixing and China commentary piece related to US trade talks

- Declining sectors in Shanghai include Property, Materials, Energy and Consumer Discretionary

- US chip-related earnings in focus: Shares of NVIDIA and Applied Materials rise in after-hours trading following results

- Nikkei rises as banks rebound after recent losses, Softbank Group tracks gains in shares of Uber

- Sony rises over 10% amid buyback announcement, exploration of partnership with Microsoft

- Virgin Australia declines on cautious outlook, notes impact of Easter holiday timing and elections on corporate sector

- Australian equities hit highest level since 2007 ahead of the upcoming May 18th (Saturday) elections

- Australian energy company Ausdrill canceled planned bond offering, noted escalation of US/China trade war

- Key RBA events are seen for next week: On Tuesday (May 21st), the RBA is due to release the minutes for its May policy meeting.

- RBA Gov Lowe is also due to speak on May 21st at the Economic Society of Australia Business Lunch

- More analysts call for June RBA rate cut after disappointing April unemployment data

- China Vice Premier calls for increased pork production in the face of shortages

- Meanwhile, China said to have canceled a US pork import order amid trade war escalation


Headlines/Economic Data

Australia/New Zealand

- ASX 200 opened +0.2%

- (AU) NAB now sees RBA rate cuts in June and Aug 2019 (previously saw rate cuts in July and Nov 2019)

- (AU) RBA Watcher Terry McCrann said to have come into line with the view that the RBA will cut rates - US financial press

- (NZ) New Zealand Q1 PPI Input q/q: -0.9% v 1.6% prior; PPI Output q/q: -0.5% v 0.7% prior

China/Hong Kong

- Shanghai Composite opened flat, Hang Seng +0.5%

- (CN) China Vice Premier: urges hog producers to boost production to increase pork supply; calls for increase in poultry production to cover pork shortage; boosting pork production is vital for economic and social stability

- (CN) China NDRC: Reiterates trade friction's impact on the Chinese economy is 'under control', domestic CPI and PPI growth to stay stable in future; Pork prices stabilized and declined m/m in April

- (US) Reportedly China has canceled a US pork import order – press

- (CA) China said to have rejected two Canadian soybean shipments last week amid increase in scrutiny - press

- (CN) China NDRC: To cut capital ratio requirement on infrastructure projects

- (CN) China PBoC sets yuan reference rate: 6.8859 v 6.8688 prior

- (CN) China PBoC Open Market Operation (OMO): Skips for 6th consecutive session: Net: CNY0B v CNY0B prior

- (CN) China Finance Ministry sells 30-year bonds: yield 3.9284% v 3.88%e, bid to cover: 1.97x

- Huawei: Follow Up: Said to have contingency plan to cut reliance on US chips - Chinese Press



- Nikkei 225 opened +0.9%

- (JP) BoJ Gov Kuroda: China economy continues to expand firmly, but weak signs broadening due to trade friction, IT sector adjustment

- (JP) Japan PM Abe said to have been warned of credit downgrade risk if sales tax hike is again delayed - US Financial Press

- (JP) Japan Fin Min Aso: Reiterates Japan will try to limit impact on economy from tax hike; hard to see impact of US Huawei move on Japan companies but need to brace for some sort of impact

- (JP) Japan MOF Asakawa (Japan's top currency official): Won't intervene to seek solution to US-China trade frictions at G20; won't include language in communique saying members will fight protectionism


- Kospi opened +0.7%

- (KR) South Korea Finance Ministry: Capital spending and exports remain weak


- (ID) Indonesia Central Bank Gov Warjiyo: Liquidity is heading towards tightness

- (SG) SINGAPORE APR NON-OIL DOMESTIC EXPORTS M/M: -0.6% V 5.0%E; Y/Y: -10% V -4.6%E; Exports to Europe -25.4% y/y; China -5.8% y/y

North America

- Cray Inc [CRAY]: Reportedly near deal to be acquired by HP Enterprise, announcement could come by as early as this week - US Financial Press


- (TU) White House issues notice on Turkey metal tariffs: Confirms US is terminating Turkey preferential treatment under GSP, effective on Friday (as expected); US to impose 25% ad valorem tariff on Turkey steel imports, down from 50% prior

- (DE) Germany Bundesbank VP Buch: Recent weakness in German economy seems only a 'dip'; More bank consolidation in Europe could provide stability - German press


Levels as of 1:20 ET

- Nikkei 225, +1.1%, ASX 200 +0.5%, Hang Seng -1%; Shanghai Composite -1.3%; Kospi -0.1%

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

- EUR 1.1181-1.1170 ; JPY 110.03-109.67 ; AUD 0.6898-0.6882 ;NZD 0.6543-0.6527

- Gold flat at $1,286/oz; Crude Oil +0.4% at $63.12/brl; Copper -0.5% at $2.735/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 rebounds after dismal US PMIs

EUR/USD is trading closer to 1.0850, rising in response to weak US PMIs, with the services one pointing to contraction. Earlier, German Manufacturing PMI beat estimates. 


GBP/USD advances to 1.2950 after US data

GBP/USD is trading around 1.2950, taking advantage of US weakness stemming from a downfall in Markit's Services PMI in the US. In Britain, the Manufacturing PMI exceeded estimates. 


Top 3 Price Prediction Bitcoin, Ethereum, Ripple: Consolidation process underway

The Crypto board continues to be immersed in an emotional leg-breaking, consistently punishing the emotional state of the traders with its continuous changes of direction.

Read more

XAU/USD unstoppable, breaks to fresh 2020 highs, approaching $1650/oz

XAU/USD is trading in an uptrend above its main daily simple moving averages (SMAs) while breaking above a bull channel. Gold is printing fresh 2020 highs hitting $1646.64 per ounce on an intraday basis.  

Gold News

FXStreet launches Real-Time Trading Signals

FXStreet Signals offers access to explanatory live webinars, real-time notifications when signals are triggered and exclusive membership to the company’s Telegram group, where users get direct guidance by our analysts and get room to discuss and interact.

More info

Forex Majors