Global Markets:
- Asian Stock Markets : Nikkei down 0.24%, Shanghai Composite up 0.09%, Hang Seng down 0.64% ASX up 0.49%
- Commodities : Gold at $2392.5 (0.03%), Silver at $31.58 (0.061%), Brent Oil at $79.73 (0.05%), WTI Oil at $75.59 (0.13%)
- Rates : US 10-year yield at 4.30, UK 10-year yield at 4.21, Germany 10-year yield at 2.55
News & Data:
- (EUR) Main Refinancing Rate 4.25% vs 4.25% expected
Markets Update:
Asia-Pacific stocks were mixed on Friday as investors analyzed economic data from China and Japan’s wage reports, while also considering the European Central Bank’s rate cut. China’s May exports exceeded expectations, rising 7.6% compared to the 6% anticipated by economists, and significantly higher than April’s 1.5% increase. However, imports grew only 1.8% year-on-year, falling short of the predicted 4.2%. Hong Kong’s Hang Seng index reversed its earlier gains, dropping 0.63% following the trade data announcement, and the mainland Chinese CSI 300 experienced a more substantial decline of 0.73%.
Japan published its household spending figures for April, an important indicator for evaluating the Bank of Japan’s anticipated “virtuous cycle” of rising wages and prices. April’s wage data is particularly significant as wage hikes often take effect during this month, coinciding with the start of the financial year for many Japanese companies. Japan’s Nikkei 225 slipped by 0.21%, while the broader Topix index edged down slightly.
Elsewhere in the region, South Korea’s Kospi rose by 0.84% as investors returned from a public holiday, and the small-cap Kosdaq saw a 1.31% increase. Australia’s S&P/ASX 200 gained 0.41%. In the U.S., markets remained within a narrow range on Thursday as traders awaited the May nonfarm payrolls report, looking for signs of a weakening labor market that could support potential rate cuts from the Federal Reserve. The S&P 500 closed slightly lower after reaching an all-time intraday high earlier in the day. The Nasdaq Composite dipped by 0.09%, while the Dow Jones Industrial Average rose by 0.2%.
Overall, investors were closely watching various economic indicators and market movements in different regions, balancing optimism from positive export data with concerns over household spending and wage growth. The mixed performance in Asia-Pacific stocks reflects the ongoing assessment of economic health and policy decisions impacting global markets.
Upcoming Events:
- 12:30 PM GMT – CAD Employment Change
- 12:30 PM GMT – CAD Unemployment Rate
- 12:30 PM GMT – USD Average Hourly Earnings m/m
- 12:30 PM GMT – USD Non-Farm Employment Change
- 12:30 PM GMT – USD Unemployment Rate
