Jun 04 ,2025
Synopsis:
Asian markets set for mixed start to Thursday trade. Futures signaling opening declines in Japan, positive start in Hong Kong and flat open in Australia. S&P 500 futures slightly lower afterhours. Australian bonds strengthening, taking cues from overnight Treasury curve bull flattening that followed soft data. Dollar steady after nearing late April lows. Crude touch below earlier highs while gold flat. Bitcoin unchanged.
Still some uncertainty whether mooted Trump-Xi call will occur this week after Trump posted Xi hard to make a deal with. Previous discussions have highlighted Xi's reluctance to engage directly with Trump until lower-level talks yield tangible outcomes. China's rare earths export curbs also seen as illustration of Xi's willingness not to acquiesce at any cost. Meanwhile, China pivoting to Europe with Airbus purchase offer and seeking France's assistance in speeding up efforts on EU trade cooperation.
Trade developments outside US-China were mixed amid reports of progress in US-EU and US-Canada talks. However, Commerce Secretary Lutnick said US would not remove Vietnam tariffs unless Chinese transshipment practices addressed. India lodged WTO dispute over US auto tariffs, viewed as latest indication of Delhi's tougher stance. Meanwhile, Reuters sources noted South Korea's new president will seek more time on US trade talks with possibility of extending 9-Jul reciprocal tariff deadline.
Overnight, softer-than-expected US ADP private payrolls and ISM services index drove dovish repricing with markets weighing higher likelihood of two Fed rate cuts in 2025. In domestic developments, Japan real wage growth maintained prior month's declines against expectation of a slight moderation. Japan 30Y bond auction today, coming after Tuesday's 10Y sale met stronger demand. South Korea Q1 GDP revision in-line with preliminary. In corporate news, FT sources noted China regulators holding up Alibaba's (9988.HK) rollout of Apple (AAPL) AI services amid geopolitical frictions.
Pre-open Company News:
002262.CH -- Jiangsu Nhwa Pharmaceutical receives NMPA's clinical trial approval for NH104 tablet for depression and insomnia
3231.TT -- Wistron reports May revenue NT$208.41B, +162.1% y/y
600066.CH -- Yutong Bus reports May vehicle sales 3,053 units vs year-ago 3,483 units
535.HK -- Gemdale Properties & Investment reports May aggregate contracted sales CNY887M; StreetAccount notes the year-ago figure was CNY1.91B
Index change: FTSE China Index Series Q2 quarterly review, effective 23-Jun
512.HK -- Grand Pharmaceutical Group completes enrollment of all patients in international multicenter phase III clinical trial of CBT-001
500049.IN -- Bharat Electronics receives INR5.37B additional new orders
532714.IN -- KEC International wins INR22.11B in new orders across T&D, oil & gas and cables businesses
Hong Kong stock connect daily turnover
1909.HK -- Fire Rock Holdings provides update on Indonesia business
2453.HK -- Concord Healthcare Group Co., Ltd. completes 18.6M shares placement at HK$5.38/share
3383.HK -- Agile Group Holdings reports May aggregated pre-sales value CNY0.93B; StreetAccount notes the year-ago figure was CNY1.65B
1033.HK -- Sinopec Oilfield Service completes up to CNY50M share buyback announced in Dec 2024
On Deck:
Japan:
Earnings:
Sekisui House (1928.JP), Ain Holdings (9627.JP)
South Korea:
Economic:
08:00 KST: GDP NSA Y/Y (Final); consensus (0.1%)
Australia:
Economic:
11:30 AEST: Trade Balance on Goods; consensus +A$5.5B
Taiwan:
Economic:
16:00 TST: CPI NSA Y/Y; consensus +1.8%
Thailand:
Economic:
07:00 SAST: CPI NSA Y/Y; consensus (0.9%)
Philippines:
Economic:
09:00 SST: CPI Y/Y; consensus +1.5%
Market Data:
Gold (Aug 25): +$3.40 or +0.10% to $3402.60
WTI Crude (Jul 25): ($0.25) or (0.40%) to $62.60
$-¥: (1.36) or (0.95%) to 142.6410
$-KRW: (17.61) or (1.28%) to 1361.0900
A$-$: +0.00 or +0.46% to 0.6492
$-INR: +0.19 or +0.23% to 85.9028
$-CNY: (0.00) or (0.05%) to 7.1842
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