Stock markets generally pull back after losses on Wall Street


General trend

– Recently released US CPI data was the focus of concern.

– NZD declined ahead of the inflation expectations survey.

– Japanese cos. due to reported earnings include SoftBank Group, Nissan Motor, NTT, Kirin Holdings, Sapporo, Nikon, Shiseido, Mitsubishi Estate, Nexon, Resona.

– US equity FUTs increase in Asia; Equity FUTs subsequently reduced their upside.

– The Chinese Ministry of Commerce (MOFCOM) sometimes holds weekly press conferences on Thursdays.

– China’s Apr Bank Lending data may be released this week.

– US PPI data due Thursday.

– Companies due to report during the New York morning include CyberArk Software, Dillard’s, Tapestry, US Foods, VIZIO.

Securities/Economic data

Australia/New Zealand

ASX 200 opened 0.0%.

(AU) Australia Consumer inflation expectation in May: 5.0% vs. 5.2% previously.

– (NZ) New Zealand Fin Min Robertson: The economy is facing capacity constraints and we will set fiscal policy with that in mind, but we also face long-term challenges.

CBA.AU reports Q3 ($A) cash profit 2.4 billion vs 2.4 billion year on year.

– (AU) Latest YouGov poll predicts Labor will win 80 seats in Australia’s next election – Australian Press.

(NZ) New Zealand Q2 Inflation Expectation Survey (2-year outlook): 3.3% vs. 3.3% previously (highest since Q1 1991).

– (AU) Australian Prime Minister Morrison says big pay rises will further fuel inflation – press.


Nikkei 225 opened -1.0%.

– (JP) Bank of Japan (BOJ) April Views Summary: Yen weakness positive for economy as output gap still wide and core inflation very low, hard to predict achieve the 2% CPI target, as the projected rise in inflation is due to temporary factors. factors.

– (JP) Japan Apr Bank Lending Y/Y: 0.9% vs. 0.5% before; Bank loans (ex-trusts) Y/Y: 1.1% versus 0.5% before.

– (JP) Japan Mar BoP Current Account: ¥2.55 versus ¥1.738; Adjust current account: ¥1.56 vs. ¥628.2.

– (JP) The Bank of Japan (BOJ) is offering to buy 5 to 10 year JGBs at a fixed rate of 25 basis points; Opens a window to buy unlimited 10-year JGBs at 0.25% [as expected].

– (JP) Japanese MoF sells ¥900 billion vs. ¥900 billion quoted in JGBs at 0.7% over 30 years, average yield: 1.0150% vs. 0.9890% before, bid-to-cover: 3.0.8x versus 3.05x before.

– 6502.JP Apparently Blackstone plans to join KKR bid for Toshiba – press (overnight).


Kospi opened -0.9%.

– 005490.KR To invest KRW25T in the battery business until 2030 – press.

– (KR) Said South Korea seeks to eliminate stock gains tax for most shareholders – Press.

– (KR) North Korea reports first covid case, orders all cities to be locked down, due to ‘stealthy’ COVID outbreak.

China/Hong Kong

Hang Seng opened -1.4%; Shanghai Composite opened -0.5%.

(CN) Chinese PBOC Deputy Governor Chen: We guided lower interest rates on loans; will increase support to weak lines, to targeted areas, to increase support to the real economy.

– (CN) Han Wenxiu, senior Chinese Party official: Aims to implement existing policies to support the economy in the first half of the year, considering additional policies to support growth and will take necessary action.

– (CN) The Chinese PBOC sets the reference rate for the yuan: 6.7292 against 6.7290 previously.

(HK) The Hong Kong Monetary Authority (HKMA) buys around HK$1.59 billion in the market as the HKD reaches the weaker end of the peg against the USD [first purchase of HKD to defend peg since 2019].

– (CN) Shanghai has found 2 cases of coronavirus outside the quarantine zone.

– (CN) China Sec Times: China is unlikely to issue special sovereign bonds despite the pressure on the country.


– (TW) Taiwan Central Bank Gov Yang: H2 GDP outlook could be revised down; reiterates continues to move towards a tightening; The TWD will not become the weakest currency in Asia.

North America

— (US) Biden administration reportedly drafting executive order that would give Justice Department sweeping powers to block foreign adversaries like China from accessing Americans’ personal data – press (US late session).

– DIDI reportedly suspends its major overseas expansion plan until 2025 and lays off 50% of workers in the UK – British press.

– DIS Reports Q2 $1.08 vs. $1.20e, Rev. $19.2 billion versus $20.3 billion.

– RIVN Reports Q1 -$1.43 adj v -$1.50e, Rev $95M v $114M; Affirms perspectives.

– DOX Q2 reports $1.54 vs. $1.24e, Rev. $1.15 billion vs. $1.12 billion.


– (UK) April RICS house price balance: 80% vs. 70%e (highest since June 2021).

– (UK) UK employers use bonuses to avoid inflationary wage deals – FT.

Levels from 12:15 a.m. ET

– Hang Seng -1.6%; Shanghai Compound -0.0%; Kospi -1.1%; Nikkei225 -1.5%; ASX 200 -1.6%.

– Equity futures: S&P500 +0.1%; Nasdaq100 +0.2%, Dax -1.9%; FTSE100 -1.4%.

– EUR 1.0530-1.0508; JPY130.05-129.51; AU$0.6953-0.6889; NZD 0.6302-0.6247.

– Commodity futures: gold -0.2% at $1,850/oz; Crude Oil -1.5% to $104.14/brl; Copper -1.7% to $4.14/lb.


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