Jun 01 ,2025
Synopsis:
Asian markets set for negative start to Monday trade. Futures signaling opening declines in Japan and Hong Kong, and flat open in Australia. S&P 500 futures weakening after index capped off best month since Nov-2023. Long-end Australian bond yields higher after Treasury curve steepened on Friday. Dollar weakening against Aussie and kiwi, steady elsewhere. Crude rallying after latest OPEC+ production hike came in lower than speculated. Gold firming alongside copper. Bitcoin lifting from Friday lows.
US-China tensions continue to simmer with Bloomberg sources noting White House planning to extend tech restrictions to company subsidiaries. Trade negotiations appear to have hit a roadblock after Trump accused China of violating Geneva deal while press highlighted China rare earth curbs as a sticking point. However, sources also noted efforts underway to set up a Trump-Xi call in bid to move forward talks. On geopolitical front, China rebuked US after Defense Secretary Hegseth warned of potentially imminent Taiwan invasion.
US and Japan held fourth round of talks late last week. Japan's Ryosei Akazawa said boosting trade, non-tariff barriers and cooperation on economic security were discussed but maintained red lines on US dropping all tariffs. Both agreed to another round of talks ahead of G7 summit in July, and possible Trump-Ishiba meeting. Addressing US steelworkers on Saturday to promote US Steel-Nippon Steel partnership, President Trump announced surprise doubling of steel tariffs to 50%, which Akazawa said was not raised during the trade talks.
In weekend macro developments, China manufacturing sector remained in contraction last month but activity improved slightly with output rebounding, while new orders and new export orders shrunk at a narrower pace. Non-manufacturing unexpectedly eased amid slowdown in construction. Private figures showed China home sales shrunk in May at a similar pace to April. South Korea exports declined last month, weighed down by autos and drop in shipments to US and China.
Pre-open Company News:
2015.HK -- Li Auto May deliveries 40,856 vehicles, +16.7% y/y
9866.HK -- NIO Inc delivers 23,231 vehicles in May, +13.1% y/y
9868.HK -- XPeng, Inc. May deliveries 33,525 vehicles, +230% y/y
4568.JP -- Daiichi Sankyo announces results from DESTINY-Gastric04 phase 3 trial of ENHERTU as second-Line therapy in patients with HER2 positive unresectable or metastatic gastric cancer
500570.IN -- Tata Motors reports May sales 70,187 units vs StreetAccount 74,135
1801.HK -- Innovent Biologics provides updated data of IBI363 from phase 1 and 2 clinical studies on immunotherapy-treated advanced malignant melanoma
500520.IN -- Mahindra & Mahindra reports May auto sales 84,110 vehicles vs StreetAccount 81,460 vehicles
175.HK -- Geely Automobile Holdings reports May sales volume 235,208 units, +46% y/y
002594.CH -- BYD Co. reports May vehicle production volume 349,824 units vs year-ago 344,008 units
2333.HK -- Great Wall Motor reports May sales 102,231 units, +11.8% y/y
508869.IN -- Apollo Hospitals Enterprise announces significant expansion in Bengaluru through additional of 700 beds
500425.IN -- Ambuja Cements releases sustainability report
505200.IN -- Eicher Motors reports May total motorcycle sales (units) 89,429 vs StreetAccount 86,242
505200.IN -- VE Commercial Vehicles reports May total sales 7,402 units vs StreetAccount 7,420 units
532343.IN -- TVS Motor reports May sales (units) 431,275 vs StreetAccount 428,960
On Deck:
Japan:
Earnings:
ITO EN (2593.JP)
Indonesia:
Economic:
11:00 SAST: CPI NSA Y/Y; consensus +1.8%
Market Data:
Gold (Aug 25): +$20.10 or +0.61% to $3335.50
WTI Crude (Jul 25): +$1.19 or +1.96% to $61.98
$-¥: (0.23) or (0.16%) to 143.8230
$-KRW: (1.01) or (0.07%) to 1381.9800
A$-$: +0.00 or +0.26% to 0.6449
$-INR: (0.01) or (0.01%) to 85.5685
$-CNY: (0.00) or (0.01%) to 7.1988
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