Asia Market Update: Asia trades generally lower amid extended holidays in China and Japan; Hang Seng extends drop, CN equity FUTs decline over 1%; USD index rebounds.
- Asian equity markets are generally lower [US equity markets ended lower on Fri; CN and JP markets are closed for holidays], indices are off of their best levels.
- Energy cos. trade generally lower in HK and AU after recent drop in oil prices.
- Hang Seng extended decline after dropping on Fri. [Banks continue to drop after recent earnings from ICBC; Gaming names drop after weaker monthly Macau casino revenues; Ping An Insurance declines after report about Founder Securities bailout].
- S&P ASX 200 has pared gains [Energy and Resources indices decline; Financials rise after earnings from Westpac]
- South Korea’s ban related to short-selling partially ended today (May 3rd); as of today, short-selling will be permitted for large caps [200 large-cap companies listed on the KOSPI and 150 firms listed on the KOSDAQ].
- US equity FUTs begin the month modestly higher.
- Japan markets are closed for holiday May 3-5th (Mon-Wed).
- Shanghai markets are also closed May 3-5th.
- RBA is due to release its monetary policy decision on Tuesday (May 4th), economic forecasts are due on May 7th (Friday).
- Companies expected to report during the NY morning include ON Semiconductor, PetMed Express.
- ASX 200 opened 0.0%.
- WBC.AU Reports H1 (A$) adj Cash profit 3.8B (un-adj 3.5B) v 993M y/y, Net interest income 8.3B v 9.0B y/y, Net Op Rev 10.7B v 10.6B y/y.
- (AU) Australia Apr AiG Performance of Manufacturing Index: 61.7 v 59.9 prior (7th consecutive increase, 3rd highest on record).
- SWM.AU Guides Q3 Advertisement rev at the upper end of 7-10% range; Signs 3-year agreement with Facebook; Finalizes 5-year partnership with Google.
- (AU) Australia Treasurer Frydenberg: Next week’s federal budget will include a A$1.7B investment in childcare (GEM.AU, TNK.AU).
- Nikkei 225 closed for holiday through the 5th.
- 7974.JP Said to be increasing switch production to ~30M units during FY21/22, planning to release an updated Switch that will have better graphics - Nikkei.
- (JP) Japan PM Suga reiterated constitution needs to be revised to specify the role of the Self-Defense Forces, doing that will be a campaign promise of the Liberal Democratic Party (LDP) for the next lower house election - Japan press.
- Kospi opened 0.0%.
- (KR) South Korea Apr Trade Balance: $0.4B v $3.1Be; Exports Y/Y: 41.1% v 42.0%e (10-year high); Semiconductor equipment imports +134.4% y/y.
- (KR) Joint statement from Japan, China, South Korea Fin Mins and Central Bank Govs: Regional outlook has improved, need to remain vigilant as economic recovery has been uneven.
- (KR) South Korea Apr PMI Manufacturing: 54.6 v 55.3 prior (7th consecutive expansion).
- Hang Seng opened -0.2%; Shanghai Composite closed for holiday through the 5th.
- 2799.HK Vice President Xu Yongli said co. is 'well prepared' for bond repayments, firm is in a 'good' financial position - Chinese pres.
- (HK) Macau Apr Casino Rev (MOP): 8.4B v 8.3B prior; Y/Y: 1,014% v 1,054%e.
- 521.HK JD.com unit, Fosun, Ping An, Juneyao, Air China all said to be interested in operations of HNA (who is being reorganized under Govt control) – press.
- (HK) Hong Kong Monetary Authority (HKMA) Chief Exec Yue: Exchange Fun Q1 Investment income HK$11.6B; Low vaccination rate in Hong Kong may affect financial center status.
- (HK) More than 40 Hong Kong stocks worth combined HK$140.9B remain suspended from trading after failing to release their FY20 earnings on time (highest number in 5 years) - press.
- SIAL.SG Completes sale leaseback of 11 aircrafts, raises S$2.0B; Continuing to explore ways to raise liquidity.
- DELL Boomi to be acquired by Francisco Partners and TPG for $4.0B cash (as speculated).
- INTC CEO Gelsinger: Chip shortage will last for couple of years before market can catch up with increased demand, will not be anywhere near as focused on buybacks going forward - 60 Minutes.
- LI Reports Apr deliveries 5,539 +111.3% y/y; Expects to capture an increasing share of the EV market with existing and new model launches down the road.
- XPEV Reports Apr deliveries 5,147 +285% y/y; Delivery of LFP battery powered P7 to start in May as planned; To build a new manufacturing base in Wuhan with expected annual capacity of 100K units.
- NIO Reports Apr deliveries 7.1K vehicles, +125.1% y/y.
- (US) US Treasury Sec Yellen said President Biden proposed spending plans [infrastructure and families and education plans] will not fuel inflation, cites the spending plans will be phased in gradually over 10 years - NBC 'Meet the Press'.
- Reminder Spain Madrid Governor elections to take place on May 4th, currently "Trump like" Isabel Diaz Ayuso expected to win, who is running under the Right-wing opposition People's Party (PP).
- (UK) Former PM Cameron expected to 'give up' on his plans for a $1.0B UK-China investment fund, as relations between the countries have deteriorated - FT.
Levels as of 01:15ET
- Hang Seng -1.5%; Shanghai Composite closed; Kospi -0.5%; Nikkei225 closed; ASX 200 +0.1%.
- Equity Futures: S&P500 +0.3%; Nasdaq100 +0.1%, Dax +0.3%; FTSE100 -0.1%.
- EUR 1.2036-1.2017; JPY 109.59-109.28; AUD 0.7733-0.7713; NZD 0.7184-0.7163.
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.