Global Markets:
- Asian Stock Markets : Nikkei down 0.98%, Shanghai Composite down 0.18%, Hang Seng down 1.28% ASX down 1.34%
- Commodities : Gold at $2292.5 (0.56%), Silver at $26.47 (1.92%), Brent Oil at $89.03 (0.18%), WTI Oil at $85.25 (0.08%)
- Rates : US 10-year yield at 4.38, UK 10-year yield at 4.14, Germany 10-year yield at 2.399
News & Data:
- (USD) Factory Orders m/m 1.4% vs 1.1% expected
Markets Update:
Asian-Pacific stocks experienced a downturn on Wednesday, following Wall Street’s decline the previous night, particularly affecting electric vehicle (EV) manufacturers due to demand concerns. Shares of Chinese EV maker BYD dropped 2.5% after reporting a significant 43% decrease in first-quarter sales compared to the previous quarter. Hong Kong’s Hang Seng index fell 1.3%, with Nio and Li Auto, other EV companies, also experiencing declines.
Tesla faced a similar fate, with first-quarter vehicle deliveries plummeting 8.5% compared to the previous year, resulting in a 5% drop in its share value overnight. Despite China’s service sector registering its quickest expansion since December, the CSI 300 index still saw a decrease of 0.29%. Taiwan was impacted by a powerful earthquake, resulting in a 0.63% drop in the Taiwan Weighted Index.
In Japan, the Nikkei 225 index fell 0.97%, closing at 39,451.85, while the Topix index declined 0.29% to reach 2,706.51. South Korea’s Kospi index witnessed a decline of 1.68%, closing at 2,706.97, with the small-cap Kosdaq experiencing a 1.30% decrease, ending at 879.96. Australia’s S&P/ASX 200 index dropped 1.3% to reach 7,785.4, extending its losses from the previous session.
The negative sentiment from Wall Street persisted due to last week’s stubborn inflation figures and strong economic data on Monday, leading to higher Treasury yields and reduced expectations of a June interest rate cut by the U.S. Federal Reserve. The Dow Jones Industrial Average experienced a second consecutive day of decline, closing nearly 400 points lower, marking a 1% decrease, while the S&P 500 slid 0.72%, representing the worst day for both indices since March 5. The Nasdaq Composite also witnessed a decline of 0.95%.
Upcoming Events:
- 12:15 PM GMT – USD ADP Non-Farm Employment Change
- 2:00 PM GMT – USD ISM Services PMI
