ASIA STOCKS: Risk Off Post Israel Strikes On Iran Weighs On Sentiment
Jun-13 04:15
Asia equities are down across the board (except for the Philippines), as risk aversion has spiked following Israel attacks on Iran (including nuclear facilities), in a major escalation of Middle East tensions. US equity futures are down sharply, albeit up slightly from session lows in latest dealings.
- US Nasdaq futures were off 2% at one stage, but sit down around 1.8% in latest dealings. Eminis were last off 1.6%, with the index back under 6000. The simple 200-day MA is back at 5900.
- The US stated it wasn't involved in the attacks, but Iran stated it will respond harshly against both the US, Israel over the attacks. Oil prices for WTI were up close to $10/bbl at one stage but has settled someone since.
- In Asia Pac equities, Japan markets are off around 1%, while at the break Hong Kong and China markets are down 0.70-0.75%. India markets are down a little over 1% in the first part of trade, with oil sensitivity in play.
- South Korea is marginally the worst performer, off over 1.2%, giving back some of the recent outperformance. The Kosdaq has slumped over 3% though.
- Losses are mostly more modest elsewhere, while Philippines markets are bucking the softer trend, up close to 0.45%.
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STIR: RBNZ Dated OIS Pricing Firms Since CPI But Much Less Than AUS
May-14 03:42
RBNZ-dated OIS pricing is flat to 3bps firmer across meetings today, leaving rates 2–14bps above levels seen prior to the Q1 CPI release on April 17.
- Q1 New Zealand CPI came in hotter than expected at 0.9% q/q, lifting the annual rate to 2.5% from 2.2% in Q4. Both tradeables and non-tradeables components contributed to the upside surprise.
- However, the RBNZ’s preferred measure of underlying inflation—the sectoral factor model—edged lower to 2.9% in Q1, down from a downwardly revised 3.0% in Q4. This marks the lowest print since Q2 2021 and places core inflation just under the top of the RBNZ’s 1–3% target band.
- In Australia, Q1 headline and underlying CPI exceeded expectations by 0.1pp, although the trimmed mean slowed to 2.9% y/y, falling within the RBA’s target band for the first time since Q4 2021.
- For comparison, RBA-dated OIS pricing is now 4–40bps firmer than pre-Q1 CPI levels recorded on April 30.
Figure 1: RBNZ Dated OIS Current vs. Pre-CPI Levels (%)
Source: MNI - Market News / Bloomberg
CHINA: Bond Futures Lower in Morning Trade
May-14 03:04
- China's bond futures are all lower in morning trading.
- The 10YR future is lower by -0.10 at 108.56 and has breached the 50-day EMA of 108.59. The next key level below is the 100-day EMA of 108.32.
- The 2YR future is lower by -0.05 at 102.46 and remains firmly below all major moving averages. The nearest being the 20-day EMA at 102.46.
- CGB bond yields are stable with the CGB 10YR at 1.66%
MNI EXCLUSIVE: Insight On German FDI Into CHina
May-14 02:52
A leading German industry leader in China provides insight into German FDI. On MNI Policy MainWire now, for more details please contact sales@marketnews.com.
