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.
Japan
– 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).
Korea
– 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.
Other
– (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.
Europe
– (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.
