ASIA-PAC MARKET WRAP: Quiet trade in Asia amid holiday closures and ahead of this week's slate of central bank updates

Analysis details (06:14)

Asian equity markets began the week quiet amid holiday-thinned conditions with the absence of key markets in the region as Australia was closed in observance of the Queen’s Birthday and with mainland China, Hong Kong and Taiwan on an extended weekend for the Dragon Boat Festival. In addition, participants got to digest last week’s G7 meeting where leaders called out China on human rights and agreed to a new global infrastructure initiative dubbed the Build Back Better World to rival China’s Belt & Road initiative, while this week’s busy slate of central bank updates including the FOMC and BoJ further contributed to the tentative mood. Nikkei 225 (+0.6%) reclaimed the 29k level after it coat-tailed on recent upside in USD/JPY which has resulted to outperformance among Japan’s exporters and with firm gains also in Toshiba after it ousted four executives in the fallout from the recent probe findings regarding collusion with government officials against foreign investors. The KOSPI (Unch.) was flat with the largest automakers lacklustre despite a near 58% jump in South Korea’s auto exports last month which was led by Hyundai Motor and Kia Motors with their shipments higher by 73.8% and 70.8%, respectively, although Hyundai also announced to temporarily suspend output in its US plant for three weeks due to chip shortages and for maintenance. Conversely, Celltrion shares outperformed after its Phase 3 trial showed its antibody COVID-19 treatment Rekirona was safe and effective whereby it slowed severe symptoms of COVID-19 in more than 70% of patients. India's NIFTY Index (-0.5%) underperformed on a pullback from record highs and with heavy pressure on Adani Group companies after the National Securities Depository froze 3 foreign accounts that have exposure to the group which could be due to disclosure issues. Finally, 10yr JGBs traded sideways on both sides of the 152.00 level after it plateaued late last week, with demand hampered as Japanese stocks remained afloat and due to the lack of BoJ bond purchases in the market with the central bank only seeking Treasury Discount Bills and Commercial Paper.

14 Jun 2021 - 06:12- Research Sheet- Source: Newsquawk