Asian Mid-session Update: China May imports worsens, Japan revised Q1 GDP tops estimates
***Economic Data***
- (JP) JAPAN Q1 FINAL GDP Q/Q: 1.0% V 0.7%E; ANNUALIZED GDP: 3.9% V 2.8%E
- (JP) JAPAN APR BOP CURRENT ACCOUNT BALANCE: ¥1.3T V ¥1.7TE; BOP ADJUSTED CURRENT ACCOUNT ¥1.3T V ¥1.4TE; TRADE BALANCE BOP BASIS: -¥146B V ¥153BE
- (JP) JAPAN MAY BANK LENDING (INCL TRUSTS): 2.6% V 2.6% PRIOR; BANK LENDING (EX- TRUSTS): 2.6% v 2.6%E
- (CN) CHINA MAY TRADE BALANCE: $59.5B V $44.8Be
- (JP) Japan May Bankruptcies Y/Y: -13.2% v -18.2% prior
***Index Snapshot (as of 02:30 GMT)***
- Nikkei225 -0.2%, S&P/ASX closed, Kospi -0.2%, Shanghai Composite +0.2%, Hang Seng -0.1%, Jun S&P500 -0.2% at 2,088
***Commodities/Fixed Income***
- Aug gold +0.6% at $1,174/oz, Jul crude oil -1.0% at $58.54/brl, Jul copper +0.1% at $2.70/lb
- SLV: iShares Silver Trust ETF daily holdings rise to 9,940 from 9,896; highest since May 14th
- GLD: SPDR Gold Trust ETF daily holdings fall 1.2 tonnes to 708.7 tonnes; lowest since Jan 14th
- USD/CNY: PBoC sets yuan mid point at 6.1205 v 6.1181 prior setting
***Market Focal Points/FX***
- Asia indices turned mixed in the early session with absence of Australia. Shanghai Composite rewrote its 7-yr high level despite that CSRC decided to revise margin trade and short selling rules last Friday. China reports its May trade balance data with exports was better than consensus but imports tumbled more than expected for the 7th consecutive decline. The drop in imports widened China's trade surplus in the month of May and exceeded market expectations.
- Japan Q1 final GDP expanded annualized 3.9%, much better than preliminary data of 2.4% rise. On a quarter-to-quarter basis, GDP grew 1.0%, higher than 0.6% preliminary reading. Meanwhile, Japan April current account balance came in slightly missing consensus. Nikkei erased earlier gain and slipped into negative territory as stronger Yen offsets the impact of revised GDP data, as of writing, USD/JPY was quoted at 125.28.
- EU's Juncker said to have rejected phone talk request from Greece Prime Minister Tsipras as he failed to deliver alternative proposal. Some other comment from France Finance Minister Sapin saying there could be no agreement with Greece after the end of June. A new round of talks is underway Hollande, Merkel, and Tsipras.
***Equities***
US equities / ADRs:
- GE: Said to be near agreement to sell private-equity lending unit to Canada's pension fund CPPIB for more than $10B in buyout loans - financial press
- JPM: Said to be planning a £6B bid for Worldpay - UK press
- DB: Co-CEOs Anshu Jain, Juergen Fitschen announce resignation
Notable movers by sector:
- Consumer discretionary: Chow Tai Fook Jewellery Group 1929.HK -4.7% (FY14/15 result); China Eastern Airlines 670.HK +7.2% (share placement, boosts capacity); China Southern Airlines Co 600029.CN +10.0% (China may cut fuel price)
- Financials: Sunac China Holdings 1918.HK -2.0% (May result); CITIC Securities 6030.HK +0.8% (to tighten margin trade rules); Bank of China Ltd 601988.CN +6.6% (speculation on mixed ownership reform), Bank of Communications 601328.CN +10.0% (mixed ownership reform, to sell CD in FTZ); Haitong International 6837.HK -2.4% (to issue bonds); CIFI Holdings Group 884.HK +1.0% (May result)
- Industrials: CRRC 601766.CN +10.0% (post merger of CNR and CSR); Hyundai Motor Co 005380.KR -2.9% (considers developing larger SUV)
- Technology: Toshiba Corporation 6502.JP +0.9% (found nothing from internal probe); NTT Data Corp 9613.JP +0.4% (speculation on acquisition)