Economic Data:
- China Economic Data
- According to the National Bureau of Statistics, the Manufacturing Purchasing Managers' Index (PMI) for May was 49.5%, a decrease of 0.9 percentage points from the previous month.
- The Non-Manufacturing Business Activity Index remained stable at 51.1%.
- The Comprehensive PMI Output Index was 51.0%, down by 0.7 percentage points from the previous month, but still above the critical point.
- US Economic Data
- The second estimate of the U.S. GDP for the first quarter of 2024 showed a growth of just 1.3%, below the expected 1.6% and trailing the 3.4% growth of the fourth quarter of last year.
- Weak US economic data led to a drop in bond yields and the dollar, allowing the AUD/USD pair to rebound.
- Japan Economic Data
In May, the Tokyo Consumer Price Index (CPI) rose by 2.2% year-on-year, higher than the previous value of 1.8%, marking the lowest increase in 26 months.
Stock Market:
- China A-shares
On Friday, the A-shares market opened mixed. The Shanghai Composite Index rose slightly by 0.1%, the Shenzhen Component Index increased by 0.04%, while the ChiNext Index fell by 0.03%. In the concept sectors, automotive services, commercial aerospace, and AI PC sectors performed strongly, leading the market. In contrast, the ST board, automotive dismantling, and metal recycling sectors underperformed. In individual stocks, Shanghai Belling rose by 2.38%, Aerospace Hergang by 4.37%, while Tongfu Microelectronics fell by 1.52%.
- Hong Kong Stock Market
- The Hang Seng Index opened up by 0.98% at 18,409.62 points; the Hang Seng Tech Index rose by 1.64%; and the Hang Seng China Enterprises Index increased by 1.17%.
- Pharmaceutical and technology stocks led gains: Akeso Biopharma rose by 15% and NIO-SW increased by over 9%.
- Autohome rose over 42% on its first trading day.
- US Stock Market
- All three major US indices closed lower: the Nasdaq fell by 1.08%, the Dow Jones by 0.86%, and the S&P 500 by 0.60%.
- The S&P 500 and Dow Jones indices experienced quote delays due to a connectivity issue, which was resolved after over an hour.
- CPO Concept Stocks
Broadex Technologies rose by over 12%, Jomoo Technology and MinFound rose by over 6%, with Cambridge Technology, Ruijie Networks, Aofei Data, and Kechuang Technology also gaining.
Forex Market:
- AUD/USD
- AUD/USD stood at 0.6632, nearly flat after previously rising by 0.35%.
- The AUD/USD rose by 0.35% due to weak US economic data and comments from Federal Reserve officials.
- USD/JPY
- USD/JPY fluctuated significantly, falling from a high of 157.02 to 156.79.
- Japan's Tokyo CPI for May rose by 2.2% year-on-year, and retail trade data exceeded expectations, boosting expectations for a rate hike by the Bank of Japan.
Central Bank Dynamics:
- Bank of Canada
- The Bank of Canada will announce its rate decision next week, with three-quarters of economists predicting a rate cut to 4.75% on June 5. Three more rate cuts are expected this year.
- Capital Economics has adjusted its forecast and now expects action from the Bank of Canada in July.
