Equities trade mixed amid speculation of impasse in US/China trade talks

Asia Market Update: Equities trade mixed amid speculation of impasse in US/China trade talks, upcoming US payrolls in focus; Aussie tests 70 cents ahead of key rate decisions next week

 

General Trend:

- HSBC’s Q1 results beat ests, shares rise

- Energy companies and Tencent decline in Hong Kong

- Guidance from Macquarie Group weighs on financial sector in Australia

- Energy shares decline on lower oil prices

- Amazon rises in after-hours trading, Buffett said to buy shares

- Australia April Services PMIs indicate easing contraction

- Brent Futures extend declines from Thursday

- Weaker oil prices weigh on Malaysian Ringgit (MYR)

- RBA due to meet on May 7th (Tuesday) and RBNZ to meet on May 8th (Wed)

- Markets in China and Japan were again closed on today’s session

- Japanese markets are due to return from Golden Week holiday on May 7th (Tuesday)

- Japan's exchanges are due to be closed between April 27 to May 6th for Golden Week

 

Headlines/Economic Data

Australia/New Zealand

- ASX 200 opened +0.1%

- (AU) AUSTRALIA MAR BUILDING APPROVALS M/M: -15.5% V -12.5%E; Y/Y: -27.3% V -25.1%E

- (AU) Australia Apr AiG Performance of Services Index: 46.5 v 44.8 prior (4th month in contraction or below 50)

- (AU) Australia Apr Final PMI Services 50.1 v 50.5 prelim

China/Hong Kong

- Shanghai Composite closed for holiday, Hang Seng opened -0.4%

- (CN) During Thursday’s NY Session, there was social media chatter about an Asia media report of potential US/China trade talk impasse

- (CN) Asian Development Bank President Nakao: ADB has begun considering raising interest rates on financing for countries that reach a certain income level, such as China - Nikkei

Japan

- Nikkei 225 closed for holiday

- (JP) Japan Ruling LDP party official said open to more spending if sales tax increase hurts growth - Japanese Press

Korea

- Kospi opened -0.2%

- (JP) Japan Government said to seek high-level meetings with North Korea in NYC - Korea Press

Other

- (ID) Indonesia Central Bank: Committed to maintain financial system stability; will ensure banks have sufficient liquidity

- (ID) Shares of Bank Danamon Indonesia [BDMN.ID] have declined by over 15% for the second straight session

- (PH) Philippines Central Bank (BSP) Gov Diokno: Rate cut inevitable, S&P rating upgrade may hasten rate cut

North America

- (US) Pres Trump: Stephen Moore is withdrawing consideration for the Fed

- JPMorgan April Global Manufacturing PMI: 50.3 v 50.5 prior (lowest reading since June 2016)

- Amazon [AMZN]: Berkshire Hathaway reportedly buying shares of Amazon - US Press

- Facebook [FB]: Said to be building cryptocurrency based payments system - US financial press

Europe

- (UK) Early results in the UK local elections show that both the Conservatives and Labour have lost support due to Brexit

- (IE) Ireland Apr PMI Services: 54.7 v 55.3 prior (3-month low)

 

Levels as of 1:20 ET

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

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

- EUR 1.1179-1.1170 ; JPY 111.55-111.40 ; AUD 0.7010-0.6984 ;NZD 0.6627-0.6608

- Gold +0.1% at $1,273/oz; Crude Oil -0.3% at $61.62/brl; Copper +0.3% at $2.791/lb