Friday 9th June 2023: Asian markets led by Nikkei rebound

Global Markets:

  • Asian Stock Markets : Nikkei up 1.59%, Shanghai Composite up 0.01%, Hang Seng up 0.05%, ASX up 0.42%
  • Commodities : Gold at $1979.15 (+0.03%), Silver at $24.42 (+0.30%), Brent Oil at $75.58 (-0.50%), WTI Oil at $70.92 (-0.52%)
  • Rates : US 10-year yield at 3.734, UK 10-year yield at 4.286, Germany 10-year yield at 2.416

News & Data:

  • (CNY) PPI y/y -4.60% vs -4.30% expected
  • (CNY) CPI y/y 0.20% vs 0.20% expected
  • (USD) Unemployment Claims 261K vs 236K expected

Markets Update:

Asia-Pacific markets are trading mixed after the S&P 500 hit a new high for 2023 and the Dow Jones Industrial Average saw a third straight day of gains. A key focus for next week would be the U.S. Federal Reserve’s policy meeting on June 13 and 14, especially after jobless claims increased more than expected to their highest since October 2021, a potential sign that the labor market is softening up after more than a year of interest rate hikes. Traders now lay 1-in-4 odds for the Fed to raise rates by a quarter point on June 14, versus 75% probability of a pause. However, the market sees a hike as mostly assured by the July 26 decision, laying the odds at about 80%.

Markets were driven by a 1.66% jump in Japan’s Nikkei, which rebounded strongly following its plunge from a 33-year high in the previous session. South Korea’s Kospi inched 1% higher, while Australia’s S&P/ASX 200 rose 0.4%. Hong Kong’s Hang Seng barely in the green, while mainland Chinese blue chips traded flat. 

The U.S. dollar index, which measures the currency against a basket of six major peers, was little changed at 103.34, sticking close to the more than two-week low of 103.29 reached on Thursday. Crude oil remained on the back foot on Friday following a report that the United States and Iran were close to a nuclear deal, although denials from both parties

Upcoming Events:

  • 12:30 PM GMT – (CAD) Employment Change
  • 12:30 PM GMT – (CAD) Unemployment Rate