Australia’s dollar jumped after the central bank unexpectedly raised interest rates. Asian stocks fluctuated as traders assessed China data and weighed risk before a Federal Reserve meeting this week. Shares in Australia extended losses along with the nation’s bonds as Reserve Bank of Australia hiked its benchmark rate by 25 basis points to 3.85%, an outcome forecast by only nine of 30 economists surveyed by Bloomberg. The RBA said inflation remained too high and some further tightening of monetary policy may be required. MSCI Inc.’s Asia Pacific Index of shares swung between gains and losses in a choppy trading as traders parsed a surprise contraction in China manufacturing against upbeat holiday spending data. Chinese markets are shut Tuesday and will reopen Thursday after a five-day holiday. Bloomberg’s dollar index ticked lower, while Treasuries edged up in Asia after being sold across the curve Monday. Swap traders have slightly upgraded the odds the Fed will raise its policy rate by a quarter point Wednesday, but now only expect rate cuts to happen in the later part of this year. China’s official manufacturing purchasing managers’ index fell to 49.2 in April, according to data released Sunday, feeding concerns that the economy may struggle to sustain growth momentum. Still, initial data from the Golden Week holiday showed strong travel, shopping and casino spending.
Payment misses by Chinese developers added to the cloudy outlook, with a gauge of real estate companies dropping 1.8%.
US Treasury Secretary Janet Yellen told lawmakers on Monday that the nation risked default as soon as June 1. That came amid a high-stakes game of chicken in Washington over the debt limit. Elsewhere, oil and gold steadied.
Nikkei +0.22% Hang Seng +0.09% CSI +1.02% Shanghai +1.14% Shenzen +1.41%
Eur$ 1.0987 CNH 6.9543 CNY 6.9148 JPY 137.72 GBP 1.2504 CHF 0.8956 RUB 80.3325 TRY 19.4607 WTI$ 75.64 -0.03% Gold 1,982.45 -0.03% BTC 27,953 +0.98% ETH 1,828 +1.12%
S&P -0.03% Nasdaq +0.01% EuroStoxx +0.16% FTSE +0.25% Dax +0.15% SMI +0.29%
Macro :
- Chinese factory activity declines in April on weak global consumption
- France’s Rating Cut to AA- From AA by Fitch on Deficits, Debt
- KWG Misses Payments, Triggers 31.2B Yuan of Cross Defaults
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