AUS
NZ
UK
CA
USA
IND
Highlights
Asia-Pacific equities trade in positive territory despite muted global activity
Stronger-than-expected Chinese industrial profits signal manufacturing recovery
Yen strengthens on policy remarks from Bank of Japan Governor Ueda
Markets across the Asia-Pacific region are trading with modest gains during Tuesday’s session. This follows a quiet start to the week due to public holidays in both the United States and the United Kingdom. Nonetheless, positive sentiment carried over from the previous session, fuelled by news of extended negotiations between the US and the European Union concerning trade tariffs.
However, broader momentum remains constrained. Gains are mostly limited to the cash equity markets, with futures under pressure. US100 futures are slightly lower, while Japan’s JP225 and Germany’s DE40 are also showing mild declines.
China’s Industrial Profit Data Beats Expectations
China released April data showing a year-on-year increase in industrial profits, marking the strongest monthly performance since December. This improvement is viewed as a sign of gradual stabilization in the country’s manufacturing landscape, with indications of improved factory activity.
Yen Strengthens on BoJ Policy Outlook
In Japan, Bank of Japan Governor Kazuo Ueda made comments this morning that gave the yen a boost. Ueda expressed readiness to increase the benchmark interest rate further if Japan’s economic conditions improve, reinforcing expectations of a more active policy stance from the central bank.
Dollar Rebounds; Antipodean Currencies Weaken
The US dollar is rebounding after a period of pressure, emerging as the top performer among developed market currencies. The EURUSD pair has moved below the 1.1370 level, while the US Dollar Index has posted a noticeable gain. Currencies from the Antipodean region are currently leading declines.
