China economic data, coronavirus, currencies in focus

Stocks in Asia Pacific were set to kick off the trading week in mixed territory as a Chinese data release over the weekend showed the country’s factory activity expanding in May.

Futures pointed to a mixed open for Japanese stocks. The Nikkei futures contract in Chicago was at 21,825 while its counterpart in Osaka was at 22,000. That compared against the Nikkei 225’s last close at 21,877.89.

Meanwhile, shares in Australia were set to dip at the open, with the SPI futures contract at 5,725, as compared to the S&P/ASX 200’s last close at 5,755.70.

Investor focus on Monday will likely be on Chinese economic data for a better gauge of the state of the country’s economic recovery from the coronavirus pandemic.

Data released over the weekend by China’s National Bureau of Statistics showed factory activity in the country expanding in May, with the official manufacturing Purchasing Manager’s Index (PMI) coming in at 50.6. That was a decline from the 50.8 print in April and below the 51.0 level expected by analysts, according to Reuters. Still, the figure for May was above the 50 level, which separates expansion from contraction in PMI readings.

Looking ahead to Monday, a private survey of China’s manufacturing activity is expected to be released at 9:45 a.m. HK/SIN, when the Caixin/Markit manufacturing PMI is set to be out.

The U.S. dollar index, which tracks the greenback against a basket of its peers, was at 98.217 after declining from levels above 99.6 last week.

The Japanese yen traded at 107.68 per dollar after seeing turbulent moves last week as it swung from levels above 107.7 to about 107.1. The Australian dollar changed hands at $0.6657 following its rise from levels below $0.655 in the previous trading week.

What’s on tap for Monday:

  • China: Caixin/Markit manufacturing Purchasing Manager’s Index at 9:45 a.m. HK/SIN
  • South Korea: Trade data for May at 8:00 a.m. HK/SIN

Source Article

Next Post

Crude prices fall on concerns of U.S. riots, even as OPEC meeting advanced

NEW YORK (Reuters) – Oil prices fell due to concerns about riots in major U.S. cities that could staunch demand after trading higher on optimism that OPEC would extend or enhance production cuts at a meeting in June. FILE PHOTO: A pump jack on a lease owned by Parsley Energy […]