CANADA FLASH MAY GDP +0.1% ON FACTORIES AND REAL ESTATE

MNI China Daily Summary: Friday, June 28

MNI BRIEF: PBOC Pledges to Curb Any Overshoot Of The Yuan: MPC

MNI: PBOC Net Injects CNY40 Bln Via OMO Fri; Rates Unchanged

CHINA PBOC CONDUCTS CNY50 BILLION VIA 7-DAY REVERSE REPOS FRI

MNI: PBOC Sets Yuan Parity Lower At 7.1268 Fri; -0.32% Y/Y

MNI: BAKER HUGHES US RIG COUNT 581; OIL RIGS 479; GAS RIGS 97

EZ/UK T-Bill Calendar: Germany, France Auction on Monday

EZ/UK Bond Supply Calendar: BoE APF on Monday

RPT-MNI: Canada Sticks To Fiscal Anchors, Spends Chunk Of Windfall

MNI BRIEF: Poilievre Calls QE 'Scam' And Would Limit BOC Remit

© 1982-2024 MNI. All rights reserved.
Terms | Privacy
Log Out
Free Trial

Asian Equities Head Lower As Micron Tech Disappoints, Yen Steadies

ASIA STOCKS
Metals bulletEM BulletHomepagemarkets-real-timeCommoditiesEmerging Market NewsEnergy BulletsBulletMarketsFixed Income BulletsForeign Exchange Bullets

Asian markets are trading lower today, influenced by a combination of factors. S&P futures fell 0.4% and Nasdaq futures weakened by 0.5% amid declining US tech stocks, influenced by Micron Technology's disappointing outlook. The ASX 200 experienced its steepest decline in two months due to inflation concerns, while Australian bonds tumbled for a second day, with the 10-year yield rising to around 4.41%. The yen stabilized slightly after recent slides, following warnings from Japanese officials about potential intervention. Broad weakness in Asian markets was attributed to a strong USD and declining confidence in positive policy surprises from China. Additionally, the MSCI Asia Pacific Index is down 0.6%, pressured by declines in tech shares.

  • Japanese stocks are lower, with the benchmark Nikkei 225 index down 0.95% and the broader Topix index is 0.44% lower. This decline comes after three days of rallies, indicating a phase of profit-taking. Despite overnight gains on Wall Street, the weakening of the Japanese yen to a near 38-year low of 160.82 vs the USD has increased market uncertainty, triggering concerns about potential government intervention to stabilize the currency, the pair trades at 160.35 now. Earlier, retail sales were 3% vs 2% est, and up from 2.4% prior.
  • South Korea’s Kospi index is 0.45% lower following a two-day gain, driven primarily by stocks trading ex-dividend and a decline in tech shares, while the Kosdaq opened 0.25% higher, however has pared those gains to now trade 0.20% lower for the day. The disappointing outlook from Micron Technology led to a slump in tech stocks like Samsung and SK Hynix. Additionally, Hyundai Motor and other major stocks also traded ex-dividend, further dragging down the index. Local funds were the biggest sellers of Kospi stocks, while foreign and retail investors were net buyers.
  • Taiwanese equities faced pressure as tech stocks, particularly in the semiconductor sector, reacted negatively to Micron Technology's sales forecast. Despite an upward revision in consensus earnings estimates for the MSCI Taiwan Index post-Q1 results, the market experienced a pullback. Investors are optimistic about AI-related growth, with TSMC benefiting from booming AI demand. However, the broader market faced headwinds from global tech sector volatility and geopolitical concerns, with Taiwan’s growth outlook remaining positive for the second half of the year. The Taiex is 0.40% lower today.
  • Australian shares have continued their sell-off and trade down 0.90% today, mirroring the regional trend. The market is reacting to mixed signals from the US, where major tech stocks fell late in the trading session due to Micron Technology’s outlook. Additionally, job vacancy data showed a 2.7% drop from the month prior , while Consumer Inflations Expectations rose to 4.4% in June from 4.1% in May.
  • Elsewhere, New Zealand equities closed 0.60% lower, Malaysian equities are 0.42% lower, Singapore equities are 0.30% higher, Indonesian equities are 0.75% higher while Philippines equities are unchanged as we await the central banks interest rate decision later today.
479 words

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.

Asian markets are trading lower today, influenced by a combination of factors. S&P futures fell 0.4% and Nasdaq futures weakened by 0.5% amid declining US tech stocks, influenced by Micron Technology's disappointing outlook. The ASX 200 experienced its steepest decline in two months due to inflation concerns, while Australian bonds tumbled for a second day, with the 10-year yield rising to around 4.41%. The yen stabilized slightly after recent slides, following warnings from Japanese officials about potential intervention. Broad weakness in Asian markets was attributed to a strong USD and declining confidence in positive policy surprises from China. Additionally, the MSCI Asia Pacific Index is down 0.6%, pressured by declines in tech shares.

  • Japanese stocks are lower, with the benchmark Nikkei 225 index down 0.95% and the broader Topix index is 0.44% lower. This decline comes after three days of rallies, indicating a phase of profit-taking. Despite overnight gains on Wall Street, the weakening of the Japanese yen to a near 38-year low of 160.82 vs the USD has increased market uncertainty, triggering concerns about potential government intervention to stabilize the currency, the pair trades at 160.35 now. Earlier, retail sales were 3% vs 2% est, and up from 2.4% prior.
  • South Korea’s Kospi index is 0.45% lower following a two-day gain, driven primarily by stocks trading ex-dividend and a decline in tech shares, while the Kosdaq opened 0.25% higher, however has pared those gains to now trade 0.20% lower for the day. The disappointing outlook from Micron Technology led to a slump in tech stocks like Samsung and SK Hynix. Additionally, Hyundai Motor and other major stocks also traded ex-dividend, further dragging down the index. Local funds were the biggest sellers of Kospi stocks, while foreign and retail investors were net buyers.
  • Taiwanese equities faced pressure as tech stocks, particularly in the semiconductor sector, reacted negatively to Micron Technology's sales forecast. Despite an upward revision in consensus earnings estimates for the MSCI Taiwan Index post-Q1 results, the market experienced a pullback. Investors are optimistic about AI-related growth, with TSMC benefiting from booming AI demand. However, the broader market faced headwinds from global tech sector volatility and geopolitical concerns, with Taiwan’s growth outlook remaining positive for the second half of the year. The Taiex is 0.40% lower today.
  • Australian shares have continued their sell-off and trade down 0.90% today, mirroring the regional trend. The market is reacting to mixed signals from the US, where major tech stocks fell late in the trading session due to Micron Technology’s outlook. Additionally, job vacancy data showed a 2.7% drop from the month prior , while Consumer Inflations Expectations rose to 4.4% in June from 4.1% in May.
  • Elsewhere, New Zealand equities closed 0.60% lower, Malaysian equities are 0.42% lower, Singapore equities are 0.30% higher, Indonesian equities are 0.75% higher while Philippines equities are unchanged as we await the central banks interest rate decision later today.