***Index Snapshot (as of 02:30 GMT)***
- Nikkei225 closed, S&P/ASX +0.4%, Kospi closed, Shanghai Composite -0.6%, Hang Seng +0.4%, Jun S&P500 -0.1% at 2,108
***Commodities/Fixed Income***
- Jun gold flat at $1,186/oz, Jun crude oil -0.1% at $58.86/brl, May copper -0.1% at $2.92/lb
- (CN) PBoC won't conduct open market operations (OMO) in today's session (5th consecutive halt)
- USD/CNY: PBoC sets yuan mid point at 6.1180 v 6.1165 prior setting; Weakest Yuan setting since Apr 28th
***Market Focal Points/FX***
- Reserve Bank of Australia cuts interest rates by 25bps in line with expectations to a new record low of 2.00%. RBA cited stronger growth in employment in the past 6 months, further depreciation of AUD seems likely and necessary and inflation to be consistent with target in next 1- 2 years. AUD/USD initially fell about 54pips testing $0.7790 before bouncing back towards $0.7910 while S&P/ASX erased earlier gain. 3-year and 10-year bond yields both move higher post decision. Moreover, Citigroup noted earlier that RBA has called for preferred AUD/USD exchange rate around $0.75 as latest runup supports the case for a cut today.
- Australia's trade balance has stayed in deficit of $1.3B signaling 12th consecutive trade deficit. Exports data declined first time in 7 months. Looking into commodity components, iron ore and crude oil exports both lower than prior month.
- In China, the PBoC continued to suspend open market operations for the 5th consecutive session. Shanghai Composite dropped by 1.8% in the morning session amid concern on more market cooling measures as some Chinese brokerage companies raised margin requirements to control risks. Energy companies provided some support on oil and gas reform speculation as well as shuffle the leadership of top three oil companies, Sinopec, PetroChina and CNOOC.
***Equities***
US equities / ADRs:
- IRG: Reports Q1 -$0.04 v -$0.06e, R$122.2M v $123Me; -3.0% afterhours
- QLYS: Reports Q1 $0.15 v $0.11e, R$37.5M v $37.7Me; +5.6% afterhours
- IM: Reports Q1 $0.43 v $0.44e, R$10.64B v $10.6Be; +0.5% afterhours
- ACRX: Reports Q1 $-0.27 v -$0.28e, R$0.18M v $0.09M y/y; Provides Zalviso Regulatory Update; +4.2% afterhours
- THC: Reports Q1 $0.67 adj v $0.31e, R$4.43B v $4.34Be; +3.8% afterhours
- IDTI: Reports Q4 $0.29 v $0.26e, R$158.4M v $158Me; -2.1% afterhours
- EOG: Reports Q1 $0.03 v $0.01e, R$2.32B v $2.56Be; +0.5% afterhours
- CAR: Reports Q1 $0.17 v $0.14e, R$1.85B v $1.93Be; +0.8% afterhours
- RAIL: Reports Q1 -$0.17 v +$0.29e, R$98M v $191Me; +2.1% afterhours
- ELNK: Reports Q1 -$0.10 v -$0.17e, R$282.4M v $272Me; +1.0% afterhours
- RGR: Reports Q1 $0.81 v $0.64e, R$137M v $121Me; +6.7% afterhours
Notable movers by sector:
- Consumer discretionary: SJM Holding 880.HK -1.0% (Q1 results)
- Financials: ANZ Bank ANZ.AU +3.4% (H1 results); Sunac China 1918.HK -2.6% (Sunac to adjust consideration price for transactions); China Vanke 000002.CN -1.9% (April data); Haitong International Securities Group 665.HK -8.7% (raises margin requirement); Ardent Leisure Group AAD.AU +10.1% (Q3 results)
- Energy: CNOOC 883.HK +0.6%, PetroChina 857.HK +0.6%, Sinopec 386.HK +1.1% (appoint new Chairmans, expects China oil and gas reform)
- Technology: Chinasoft International 354.HK -4.5% (issues new shares)
- Materials: China National Building Material 3323.HK -0.6% (Q1 results); Asia Cement China Holdings 743.HK -0.9% (Q1 results)
***Economic Data***
*(AU) RBA CUTS CASH RATE TARGET BY 25BPS TO 2.00%, AS EXPECTED
*(ID) INDONESIA Q1 GDP Q/Q: -0.2% V +0.3%E, Y/Y: 4.7% V 4.9%E (slowest annual pace since 2009)
*(AU) AUSTRALIA MAR TRADE BALANCE: -A$1.3B V -A$1.0BE (12th consecutive deficit and widest in 6 months)
*(PH) PHILIPPINES APR CPI M/M: 0.2% V 0.3%E; Y/Y: 2.2% V 2.4%E; CPI CORE Y/Y: 2.5% V 2.7%E
*(TW) TAIWAN APR CPI Y/Y: -0.8% V -0.7%E; WPI Y/Y: -9.2% V -7.9%E
(AU) Australia ANZ Roy Morgan Weekly Consumer Confidence Index: 108.7 v 111.8 prior
*(AU) AUSTRALIA APR AIG PERFORMANCE OF SERVICES INDEX: 49.7 V 50.2 PRIOR; First contraction in 3 months
Contributed by Trade The News
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