MNI Asia Pac Weekly Macro Wrap
Jun-26 06:00By: Maxine Koster and 1 more...
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Executive Summary:
JAPAN
- Tokyo June CPI inflation is expected to ease helped by rice but services, especially rents, will be monitored for upside pressures.
AUSTRALIA
- May headline CPI inflation was flat on the month, seasonally adjusted, driving a 0.3pp moderation in the annual rate to 2.1% driven by a broad-based easing across major components. The trimmed mean moderated to 2.4% y/y from 2.8%, the lowest since November 2021. The softer data has increased July RBA cut expectations.
- The preliminary June S&P Global PMIs showed that services activity in Australia ended Q2 on a more positive note with the index up to 51.3 from 50.6. The Q2 average composite PMI was 50.9 down slightly from Q1’s 51.1, signalling that growth was little changed and remained positive but lacklustre.
NEW ZEALAND
- NZ posted its fourth consecutive monthly merchandise trade surplus in May with shipments to the US remaining elevated. The surplus was $1.23bn slightly narrower than April’s $1.29bn with the YTD deficit narrowing $1.18bn to $3.79bn.
CHINA
- China unveiled guidelines on ramping up financial support to effectively boost consumption.
SOUTH KOREA
- South Korea's trade minister Yeo has called for the country to be exempted from US trade tariffs particularly on cars and steel whilst confirming his commitment to reaching a mutually beneficial agreement.
ASIA
- The Bank of Thailand left rates at 1.75%, as was expected, as it considered timing given how low rates already are. The vote was split 6-1, with one MPC member voting for a 25bp cut.
- Malaysia's May CPI rose just +1.2% YoY, the lowest it has been post-COVID. This is the fourth successive month on month decline.
- India's preliminary PMI's for June rose strongly and set them well ahead of their regional peers. The PMI Manufacturing rose to +58.4, from +57.6 prior.
ASIA EQUITY FLOWS
- Taiwan recorded back to back daily flows taking them to inflows of over $2.5bn. It had inflows of +$1,472m yesterday, with total inflows of +$1,480 m over the past 5 days.
