Asian shares made modest moves as investors avoided taking long-term risky bets ahead on US payrolls data Friday. A regional gauge swung to a loss as Japanese stocks extended declines after demand at a 30-year government bond auction was weaker than average. The yield on 10-year US Treasuries advanced 2 basis points. Bonds had rallied across the curve Wednesday as data showed a contraction in US service providers and a deceleration in hiring. The dollar was weaker against all its Group-of-10 peers in Asian trading.
Investors are mostly staying on the sidelines as they await key economic data from the US Friday, which will provide clues on the direction of the markets. US economic activity has fallen slightly in recent weeks, indicating tariffs and elevated uncertainty are hurting the economy. Still, a gauge of global stocks closed at a record high Wednesday amid speculation that the worst may be over after the tumult fueled by President Donald Trump’s ‘Liberation Day’ announcement two months ago. Markets swings “have become perhaps a bit less violent since Liberation Day,” said Christina Woon, a portfolio manager at Eastspring Investments, on Bloomberg Television. A “bit of Trump fatigue” is one reason, she said. The Institute for Supply Management’s index of services dropped a touch below the 50 level that separates expansion and contraction. Private payrolls rose the least in two years. Nonfarm payroll jobs data due Friday will provide further clarity. On Wednesday, two- to 10-year yields reached the lowest levels since at least May 9 after the ISM Services gauge for last month signaled contraction for the first time in a year. Traders of swap contracts that predict Fed rate changes priced in higher odds of two quarter-point cuts by year-end, in October and December. The possibility of a move in September increased to more than 90% from around 82%. Later Thursday, the European Central Bank will hand down an interest rate decision. Meanwhile, China’s services activity expanded at a faster pace in May, a private survey showed, in a sign the consumer economy is stabilizing while higher US tariffs threaten demand for exports.
In Japan, the 30-year government bond auction saw the weakest demand since 2023, ramping up pressure on the government to adjust issuance. This came after disappointing demand at sales of 20-year and 40-year bonds late last month exposed investor concern about a lack of buyers for longer tenors. Although a 10-year auction this week brought some relief for the Japanese market, expanding deficits are putting longer bonds under pressure worldwide. Kevin Zhao, head of global sovereign and currency at UBS Asset Management, floated the idea that Japan should stop issuing long bonds to halt a recent selloff. US After Hours VRNT +18.6%, MDB +13.6%, FIVE +3.8% higher on earnings; PVH -6.3%, DSGX -3.7% lower on earnings
Nikkei -0.50% Hang Seng +0.56% CSI +0.06% Shanghai +0.07% Shenzen +0.26%
Eur$ 1.1412 CNH 7.1799 CNY 7.1834 JPY 143.01 GBP 1.3546 CHF 0.8190 RUB 79.3000 TRY 39.3209 WTI$ 62.55 -0.48% Gold 3,368 -0.15% BTC 105,233 +0.55% ETH 2,634 +1.06%
S&P -0.11% Nasdaq -0.16% EuroStoxx -0.07% FTSE -0.08% Dax -0.05% SMI -0.18%
Macro :
- DAX Remains Unchanged, IONOS Added to MDAX, Qontigo Says
- Third-Largest German Gas Storage Facility to Miss Winter Goal
- IMF Says Trade War Tougher for EM Central Banks Than Covid: FT
- FTSE MIB Index Review Results in No Changes (June 4)
Keep an eye on :
Keep an eye on :
- ACE IM : Acea Gets Binding Offer for Acea Energia From Eni Plenitude
- AIR FP : BOC Aviation Agrees to Buy Nine Airbus A320neo Aircraft
- AAPL US : Apple loses bid to pause app store reform order in Epic Games case - Reuters
- ALVOSDB SS : Alvotech Offers Up to 7.5m Shares, Swedish Depository Receipts, Alvotech Offering of Up to 7.5m Shares Prices at SEK10/Share
- AVOL SW : Avolta Holder Taobao China Holding Offers Shares, Terms Show
- BPE IM : Italy Market Regulator Approves BPER Offer on Popolare Sondrio
- BCHN SW : Burckhardt FY Sales Meet Estimates
- CABK SM : *CAIXABANK CLAIMS €132M FROM INSURERS FOR BANKIA IPO: EXPANSION
- GOOS CN : Canada Goose Sees $30M Charge After Losing Dispute With Vendor
- EKTAB SS : Elekta to Buy Assets From Distributor in Croatia; No Terms
- ENT LN : Entain boss Dean Shannon to depart ahead of AUSTRAC remediation
- ETL FP : Eutelsat Holder Hanwha Offers About 25.9m Shrs, Terms Show
- ETL FP : Eutelsat Holder Hanwha Offers About 25.9m Shrs, Terms Show
- GLEN LN : Glencore-Backed Cobalt Holdings Axes $230 Million London IPO
- IOS GY ; Added to Mdax
- JEN GY : Deleted from MAdx
- KLDVK NO : Kaldvik to Raise EUR46.2 Million in Share Sale at NOK14/Share
- MC FP : LVMH-Backed Firm L Catterton Sets Up Japan Buyout Fund: Nikkei
- OR FP : L’Oréal Poised to Seal €1b Deal for Skincare Brand Medik8: FT
- 1913 HK : Prada to Take 10% Stake in Rino Mastrotto, No Terms ( https://www.rinomastrotto.com/en/)
- SESG FP : SES, Intelsat Deal Set to Win EU Antitrust Nod: Reuters
- 9984 JP : Greensill to Testify in Credit Suisse Case Against Softbank: FT
- MSTR US : Strategy Is Said to Guide STRD Share Price at $85 to $90 Each
- STLA US : Ram Brings Back Hemi V8 Engine in Bid to Reclaim Lost Sales
- STMF FP : Italy Official Says Governance Split of STMicro Not An Option
- UBSG SW : UBS's New Capital Requirements Could Absorb Much of Credit Suisse Gains -- Market Talk
- UCG IM : UniCredit Gets European Commission Clearance on Banco BPM Offer