Jun 03 ,2025
Synopsis:
Asian markets set for positive start to Wednesday trade. Futures signaling opening gains in Japan, Hong Kong and Australia. US contracts flat afterhours. Australian bonds little changed after Treasuries finished mostly weaker overnight. Dollar steady after rebounding from late April lows. Crude flat after nearing one-month high. Gold unchanged. Copper holding near late April highs. Bitcoin continues to fluctuate.
More headlines mentioning likelihood of a Trump-Xi call this week, expected to be Friday (though no confirmation yet from China). US frustration at China's slow-walking licenses for rare-earth exports, and Beijing's unhappiness about continued flurry of US export restrictions, the main source of latest frictions. Press have also discussed China's increasing willingness to use rare earths as leverage and Xi's determination to maintain an assertive stance in trade talks.
Democratic Party candidate Lee Jae-myung won Tuesday's South Korea presidential election after leading in polls. Lee will take office immediately. Among Lee's immediate priorities will be progressing US trade talks though he has said previously he sees no rush to sign deal. Two sides have set aim of striking comprehensive agreement before 9-Jul reciprocal tariff pause deadline. On domestic policy front, Lee campaigned on supplementary budget of at least KRW30T ($21.8B) to stimulate economy.
Australia Q1 GDP growth forecast to have slowed, weighed down by modest drags from net exports, public demand and equipment capex but offset by inventory growth. Household consumption will be key for RBA following recent softness in spending metrics. May meeting minutes showed board weighed case for 50 bp rate cut based partly on downside risks stemming from slower pickup in consumption. Markets pricing in ~70% chance of July rate cut with RBA's focus having shifted from inflation to supporting economy amid increase in tariff-related growth headwinds.
Pre-open Company News:
Italy May new passenger car registrations 139,390; (0.2%) y/y -- UNRAE
3563.JP -- Food & Life Companies reports May same-store sales +18.9% y/y
4023.JP -- Kureha to suspend buyback and establish new limit of up-to-10.0M shares for up-to-¥35.00B, to run from 4-Jun to 30-Sep
601228.CH -- Guangzhou Port reports May container throughput 2.3M TEUs, +4.3% y/y
002008.CH -- Han's Laser Technology Industry Group's unit Shenzhen Han's CNC Technology files for Hong Kong IPO through CICC
603899.CH -- Shanghai M&G Stationery CFO Tang Xianbao resigns due to personal reasons, effective 30-May
6526.JP -- Socionext initiated neutral at Toward the Infinite World (TIW)
6849.JP -- Nihon Kohden upgraded to outperform from neutral at Toward the Infinite World (TIW)
Thames Water moves forward with senior creditors' plan after KKR withdraws from equity raise process (earlier)
540222.IN -- Laurus Labs publishes Annual Report for FY2024-25
4197.MK -- Insider Transaction: Sime Darby CEO Jeffri Salim Davidson discloses acquisition of 200K shares
500660.IN -- GlaxoSmithKline Pharmaceuticals releases FY24-25 business responsibility and sustainability report
603858.CH -- Buchang Pharmaceuticals unit withdraws application to NMPA for trial of freeze-dried rabies vaccine (human diploid cells)
4715.MK -- Genting Malaysia completes acquisition of remaining 51% stake in Genting Empire Resorts; deal announced on 2-May
On Deck:
South Korea:
Economic:
08:00 KST: CPI NSA Y/Y; consensus +2.1%
08:00 KST: CPI M/M; consensus 0%
Australia:
Economic:
11:30 AEST: GDP Y/Y; consensus +1.5%
11:30 AEST: GDP SAAR Q/Q; consensus +2.1%
11:30 AEST: GDP SA Q/Q; consensus +0.4%
Market Data:
Gold (Aug 25): +$5.70 or +0.17% to $3382.80
WTI Crude (Jul 25): ($0.03) or (0.05%) to $63.38
$-¥: +1.25 or +0.88% to 143.9600
$-KRW: +0.67 or +0.05% to 1377.7200
A$-$: (0.00) or (0.52%) to 0.6462
$-INR: +0.19 or +0.22% to 85.5788
$-CNY: (0.01) or (0.18%) to 7.1871
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