Asian and Australian Stocks While You Were Sleeping

May 07, 2018

Asian & Australian Markets

• Asia markets mixed to start week, Nikkei 225 -0.03%, Hang Seng +0.23%, and Sensex +0.86%
• Australian equities advanced with ASX 200 +0.36%
• Energy sector was a broad outperformer across Asia/Australia
• Market breadth was mixed with the Nikkei 225 posting 99 advances and 117 declines, while 29 of 50 stocks gained in the Hang Seng and 23 of 30 stocks finished higher in the Sensex
• Market breadth for the ASX 200 was decidedly positive as 108 of 200 stocks were in the black

Asian Outlook

• A Chinese State Administration of Foreign Exchange (SAFE) reported that China’s current account balance in 1Q2018 was a negative $28.2 billion, sharply contrasting the $18.4 billion surplus in 1Q2017
• PBOC Governor Yi Gang reportedly remarked that China’s “huge” trade disparity with the US is a problem that needs to be addressed with rationality
• China’s Ministry of Commerce is reportedly set to unveil methods for increasing imports. One of these approaches will purportedly be further tariff reductions, such as China’s earlier decrease on auto tariffs
• BoJ meeting minutes indicated that there continues to be a need for significant monetary easing

Australian Outlook 

• Australian Treasurer Scott Morrison limited expectations for personal income tax cuts, noting that they will be modest in the short-term, and increase in coming years 
• The Australian government is reportedly set to commit A$24.5 billion to infrastructure projects, including the including funding for the new western Sydney airport, the Melbourne Airport rail link, as part of the government’s A$75 billion, decade-long infrastructure project plan announced last year
• A report by The Australian suggest that the Australian government will include a stipulation into this year’s budget rules which will limit tax as a share of GDP to 23.9%

Nikkei 225 Movers

In local currency.

Hang Seng Movers

In local currency.

Sensex Movers

In local currency.

ASX 200 Movers

In local currency.