May 20 ,2025
Synopsis:
Asian markets set for positive start to Wednesday trade. Futures signalling flat starts in Japan and Hong Kong, and initial gains in Australia. S&P 500 futures slightly lower afterhours. Australian yield curve steepening following dovish takeaways from Tuesday's RBA rate cut. Treasuries little changed to weaker overnight with curve steepening. FX markets steady after dollar extended losses in wake of Moody's downgrade. Crude rallying following latest Middle East headlines. Gold adding to overnight gains. Bitcoin unchanged near record high.
Nothing particularly incremental from latest trade developments. US Treasury downplayed prospect of trade deal announcements at G7 finance leaders meeting. Japan maintaining demand US eliminates all tariffs as third round of talks begins later this week. Japan and US also expected to talk FX. US-Vietnam in second round of trade negotiations with China transshipment practices previous a sticking point. US-India talks seemingly making most progress with Delhi reportedly discussing trade deal structured in three tranches.
In macro news, Taiwan export order growth double consensus in April, attributed to front-loading of tech purchases as tariffs went into effect. Reuters Tankan showed Japan manufacturer sentiment little changed in May though firms more cautious about outlook amid tariff volatility. Services sector sentiment remained strong. Japan trade data out later, coming after figures for first 20 days of April showed a slowdown in export growth driven in part by autos.
In other developments, BOJ bond market hearings on Tuesday indicated most participants remain on board with purchase taper though with notable dispersion on the desired pace. Hearings also dovetailed with Tuesday spike in superlong JGB yields following poor 20Y auction. On geopolitical front, CNN sources noted Israel preparing to strike Iranian nuclear facilities, clouding prospect of US-Iran nuclear deal that seemingly got a boost last week following conciliatory remarks by Trump.
Pre-open Company News:
500184.IN -- Himadri Speciality Chemical releases Annual Report for FY2024-25
9517.JP -- eREX Co. reports April power generation 60,113MWh vs 83,332MWh in March
688425.CH -- China Railway Construction Heavy Industry general manager Wang Peng resigns due to work adjustments, effective immediately
500378.IN -- Jindal Saw publishes Business Responsibility and Sustainability Report for FY2024-25
500440.IN -- Hindalco Industries reports Q4 consolidated net income attributable INR52.83B vs StreetAccount INR45.37B
603986.CH -- Giga Device Semiconductor plans for Hong Kong IPO
China Jan-Apr securities transaction stamp duty CNY53.5B. +57.8% y/y
China Jan-Apr government land sale revenue CNY1.365T, (8.4%) y/y
543220.IN -- Max Healthcare Institute reports Q4 consolidated EPS INR3.26 vs year-ago INR2.58
543220.IN -- Follow-up: Max Healthcare Institute reports Q4 net revenue (Network Hospitals) INR23.26B, +29% vs year-ago INR17.99B
S59.SP -- SIA Engineering signs services agreements with Singapore Airlines and Scoot, with expected SG$1.3B labour revenue
8616.JP -- Tokai Tokyo Financial Holdings president Masataka Sato to resign, effective 26-Jun
On Deck:
China:
Economic:
08:00 CST: Foreign Direct Investment Y/Y; consensus
Hong Kong:
Earnings:
Topsports International Holdings (6110.HK)
Japan:
Economic:
09:30 JST: Import NSA Y/Y (Preliminary); consensus (5.05%)
09:30 JST: Export NSA Y/Y (Preliminary); consensus +3.1%
09:30 JST: Trade Balance NSA (Preliminary); consensus +¥0.2T
Australia:
Earnings:
Australian Agricultural Co. (AAC.AU), WEB Travel Group (WEB.AU)
New Zealand:
Economic:
10:45 NZST: Trade Balance Goods; consensus
Earnings:
Oceania Healthcare (OCA.NZ)
India:
Earnings:
Uno Minda (532539.IN), TeamLease Services (539658.IN), Mankind Pharma (543904.IN), Colgate-Palmolive (India) (500830.IN), Vaibhav Global (532156.IN), National Aluminium (532234.IN), Astral (532830.IN), Oil India (533106.IN), IRCON International (541956.IN), Rail Vikas Nigam (542649.IN), Prince Pipes & Fittings (542907.IN)
Singapore:
Earnings:
Yoma Strategic Holdings (Z59.SP), Singtel (Z74.SP)
Market Data:
Gold (Jun 25): +$11.80 or +0.36% to $3296.40
WTI Crude (Jun 25): $0.00 or 0.00% to $62.56
$-¥: (0.47) or (0.33%) to 144.3840
$-KRW: +3.19 or +0.23% to 1392.7300
A$-$: (0.00) or (0.53%) to 0.6423
$-INR: +0.18 or +0.21% to 85.5364
$-CNY: +0.00 or +0.06% to 7.2189
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