Asian stocks snapped a three-day selling streak, boosted by a decline in Treasury yields and optimism for policy support after a raft of disappointing data from the US to China and Japan. Stock benchmarks climbed in Hong Kong, Japan and Australia, helping the MSCI Asia Pacific Index trim its weekly losses. Equities were also boosted by likely passive flows due to rebalancing of portfolios ahead of the changes in MSCI Standard Indexes on Friday. US stock futures slipped in Asian trading, while Treasuries extended their gains. The dollar was steady after falling on Wednesday and is on pace for a monthly decline.
In China, stocks looked past the weakness in economic data. Asia’s largest economy saw official manufacturing and non-manufacturing PMIs miss estimates Friday, with the former falling back into contraction. The PMI data in China “definitely has an impact on the pace of fiscal and monetary policy to follow,” said Wendy Chen, senior investment analyst at GAM Investment Management Switzerland Ltd., on Bloomberg Radio. “We are expecting to hear more policy support to address the property and lingering inventory problem” in China, she said. A slowdown in growth in the US, weak manufacturing activity in China and a contraction in industrial output in Japan illustrate the growing challenge for central bankers debating their next steps. The weakness in economic activity also emboldens investors betting on easing of monetary conditions across the world. The yen fluctuated after Japan’s industrial output in April fell, while the nation’s jobless rate was unchanged. Still, Inflation in Tokyo — a barometer for the wider country — accelerated in May, keeping the Bank of Japan largely on track to consider a rate hike in coming months. Money markets are pricing about 29 basis points of rate hikes by year-end, up from 20 basis points at the start of May, according to data compiled by Bloomberg. The S&P 500 slid 0.6% to 5,235 on Thursday, led by tech losses. US officials slowed the issuing of licenses to chipmakers such as Nvidia Corp. and Advanced Micro Devices Inc. for large-scale AI accelerator shipments to the Middle East, according to people familiar with the matter. The dollar was steady while US Treasuries extended Thursday’s gain in Asia, ahead of the release of the Fed’s favorite price gauge and following a report that showed the US economy grew at a softer pace — as both spending and inflation were marked down.
With markets expecting the core PCE measure to ease slightly in April from a month ago, anything less “could weigh on the US dollar modestly,” said Kristina Clifton, a senior economist and strategist at Commonwealth Bank of Australia in Sydney. Elsewhere, a jury found Donald Trump guilty on all 34 counts of falsifying business records at his hush-money trial, making him the first former US president to be convicted of crimes. With Trump to due to face sentencing on July 11, the conviction creates a daunting legal and political path as he faces President Joe Biden in November as the presumptive Republican nominee. Focus will soon shift to European inflation data due as investors debate how much the European Central Bank can cut after it likely eases policy next week. US After Hours GPS +20.9%, ZS +15.2%, AMBA +12.4%, ULTA +11.2% all up big on earnings; MDB -25.3%, DELL -18.1%, VEEV -12.5% selling off on quarterly results.
Nikkei +1.02% Hang Seng +0.67% CSI -0.02% Shanghai +0.11% Shenzen +0.54%
Eur$ 1.0818 CNH 7.2558 CNY 7.2414 JPY 156.78 GBP 1.2722 CHF 0.9041 RUB 90.2500 TRY 32.2473 WTI$ 77.67 -0.31% Gold 2,343 -- BTC 68,406 -0.10% ETH 3,753 +0.40%
S&P -0.17% Nasdaq -0.29% EuroStoxx +0.06% FTSE -0.02% Dax -0.15% SMI +0.08%
Macro :
- More OPEC+ Output Cuts? $80 Oil, Softer Market Signal Extension
- China Population Drop Is First in Six Decades, China Aims for Slower Urbanization
- Paul Singer's Elliott Management just raised $8.5 billion. The vaunted hedge fund laid out where it sees opportunities in its
- Paul Singer's Elliott Management just raised $8.5 billion. The vaunted hedge fund laid out where it sees opportunities in its
- Donald Trump Found Guilty in Historic NY Hush Money Case
- Germany Announces New €500 Million Weapons Package for Ukraine
- Russia Is Using North Korean Missiles in Ukraine, US Agency Says
- Early UK Election Adds to Bull Case for London Markets This Year
Keep an eye on :
- ABF LN : Howard Investments Intends to Sell About 10.3m AB Foods Shares
Keep an eye on :
- ABF LN : Howard Investments Intends to Sell About 10.3m AB Foods Shares
- AENA SSM : Aena to Bid for Three UK Airports: Expansion
- AIR FP : Boeing to Remain Under Close Watch by FAA After Reform Plan
- AMZN US : Google Poaches AWS, Microsoft Executives for Cloud Unit
- ARAMCO AB : Saudi Arabia to Sell 1.545 Billion Aramco Shares
- MT NA : Germany Grants €1.3 Billion for ArcelorMittal’s Low-Carbon Steel
- BBVA SM : BBVA Calls Extraordinary Shareholders Meeting for Sabadell Bid
- BA US : Boeing Shares Details of Plan to Revamp Safety, Quality Controls
- IF IM : Banca Ifis Completes Three-Year Npl Plan; Unit Head to Leave
- CNHI NA : Farm Machinery Maker CNH Sees Another Executive Departure
- DELL US : Dell Falls After AI Server Sales Fail to Impress Investors --> -20% in After Hours
- EDF FP : EDF Buys GE Vernova’s Nuclear Turbine Unit, France’s Macron Says
- GILD US : Gilead's Trodelvy Woes Continue After TROPiCS-04 Failure: React
- GRNG SS : Granges Extends Partnership With Shandong Innovation Group
- HTZ US : Hertz Is Said to Explore Options for Raising Financing
- IMPN SW : Implenia Wins Norway Tunnel Project With Order Volume >CHF420M
- IG IM : Italgas Sees FY Adj. Ebitda €1.32b-€1.35b (May 30)
- LLQ SW : Lalique Majority Holder Offers to Delist Company at CHF40/Shr
- MBTN SW : Meyer Burger Proposes a Reverse Share Split in Ratio 750:1
- NOVN SW : Novartis: Data Show Efficacy, Safety of Oral Remibrutinib in CSU
- PSH NA : Bill Ackman Leans Toward Backing Donald Trump: FT
- RNO FP : Renault to Develop Much of Under-€20,000 Electric Car in China
- RNO FP : Renault, China’s Geely Formalize Hybrid Powertrain Tie-Up
- RYA ID : Ryanair Says Italy’s AGCM Rejects Injunction Against the Airline
- SAN FP : Sanofi Says FDA Extends sBLA Target Date for Dupixent for COPD
- STB NO : Storebrand Gets Acceptance on Bid to Buy Lysaker Park Eiendom
- TSLA US : Tesla Shareholders Advised by ISS to Reject Musk’s Pay Package
- TIT IM : KKR's $23 Billion Acquisition of Telecom Italia's Broadband Network Receives EU Approval
- TOD IM : Tod’s Group will be delisted on June 7, but trading of shares will be suspended during the two prior days, which means the last day of trading will be June 4.
- TRMDA DC : Torm Holder Oaktree Capital Management Offers 6.9m Shares
- UCB BB : UCB Gets Positive EU Opinion for Bimzelx Device Presentations
- VWS DC : Vestas, Wind-Turbine Peers Eye Margin Lift on Backlog Strength