Tuesday 2nd June: Asian markets mostly higher on overnight optimism

Global Markets:

• Asian Stock Markets : Nikkei up 1.19%, Shanghai Composite up 0.20%, Hang Seng up 0.96%, ASX up 0.27%
• Commodities : Gold at $1744.90 (-0.31%), Silver at $18.72 (-0.58%), Brent Oil at $38.77 (+1.17%), WTI Oil at $35.77 (+0.93%)
• Rates : US 10-year yield at 0.656, UK 10-year yield at 0.209, Germany 10-year yield at -0.428

News & Data:

• (AUD) Cash Rate 0.25% vs 0.25% expected
• (AUD) Current Account 8.4B vs 6.3B expected
• (USD) ISM Manufacturing PMI 43.1 vs 43.5 expected
• Registered unemployment rises in May by 26,573 people compared to the previous month
• Turnover in Swiss retail trade fell by around 20% in April 2020 due to the COVID-19 pandemic

Markets Update:

Asian stock markets are mostly higher on Tuesday following the positive cues overnight from Wall Street. Optimism about the reopening of economies around the world helped offset worries about rising U.S.-China tensions and political unrest in the U.S. Reports indicated China has told state-owned firms to halt purchases of some U.S. farm goods amid tensions over Hong Kong.

Mainland Chinese stocks nudged higher on the day, with the Shanghai composite up 0.2%. Hong Kong’s Hang Seng index saw gains as well, rising 1.0%, as of its final hour of trading. In Japan, the Nikkei 225 added 1.2% as shares of index heavyweight and conglomerate Softbank Group surged more than 3% while the Topix index finished its trading day 1.2% higher. South Korea’s Kospi also closed 1.1%.

The U.S. dollar index, which tracks the greenback against a basket of its peers, was at 97.861 after slipping from levels above 98 seen on Monday.

Oil futures steadied with traders waiting to see whether major producers agree to extend output cuts at an OPEC+ meeting later in the week.

Upcoming Events:

• 08:30 AM GMT – (GBP) M4 Money Supply m/m
• 08:30 AM GMT – (GBP) Mortgage Approvals
• 08:30 AM GMT – (GBP) Net Lending to Individuals m/m
• Tentative – (GBP) 10-y Bond Auction
• All Day – (USD) Wards Total Vehicle Sales
• Tentative – (NZD) GDT Price Index
• 10:30 PM GMT – (AUD) AIG Construction Index
• 11:01 PM GMT – (GBP) BRC Shop Price Index y/y