13th May 2022 Friday: Asian markets buck the trend to trade higher

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Global Markets:

  • Asian Stock Markets : Nikkei up 2.64%, Shanghai Composite up 0.96%, Hang Seng up 2.73%, ASX up 1.93%
  • Commodities : Gold at $1826.57 (+0.11%), Silver at $20.95 (+0.85%), Brent Oil at $108.66 (+1.13%), WTI Oil at $107.06 (+0.88%)
  • Rates : US 10-year yield at 2.897, UK 10-year yield at 1.743, Germany 10-year yield at 0.914

News & Data:

  • (USD) Unemployment Claims 203K vs 190K expected
  • (USD) Core PPI m/m 0.40% vs 0.60% expected
  • (USD) PPI m/m 0.50% vs 0.50% expected
  • (GBP) Prelim GDP q/q 0.80% vs 1.00% expected

Markets Update:

Asian stock markets are mostly higher on Friday after the recent losing streak, following the mixed cues from Wall Street overnight, as traders continued to pick up stocks at a bargain and reacted to the prospects of sharper and faster rate hikes as well as tighter monetary policies by several central banks to reign in the highest inflation in decades.

The Japanese stock market is sharply higher on Friday, on news that the Japanese government will implement new policies to boost growth, even as rising worries about high inflation and tightening monetary policies remain. The Australian stock market is sharply higher on Friday, with strength in energy and technology stocks, even as rising worries about high inflation and tightening monetary policies remain. 

The U.S. dollar index, which tracks the greenback against a basket of its peers, was at 104.592 after a recent climb from below 104.3. The U.S. Producer Price Index (PPI) rose 0.5% month-on-month in April, slower than the 1.6% increase in March, thanks to the moderation of rising costs of energy products.

In commodities markets, oil prices were higher against the backdrop of a pending European Union ban on Russian oil, but were still set for their first weekly loss in three weeks, hit by concerns over inflation and China’s COVID lockdowns slowing global growth.

Upcoming Events:

  • 02:00 PM GMT – (USD) Prelim UoM Consumer Sentiment
  • 04:00 PM GMT – (USD) FOMC Member Mester Speaks