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World News Roundup

🇳🇿 New Zealand Shares Trade Lower to Kick off Week

Stocks in New Zealand dropped 46.36 points or 0.39% to 11,737.03 in the morning session on Monday, retreating for the second straight day, weighed by falls from consumer staples, healthcare, utilities, and industrials. Traders were cautious ahead of Chinese industrial profits for May later today and anticipated US PCE inflation this week for clues on the central bank's future monetary policy decisions path. Caution also built ahead of releases of New Zealand's business outlook for May after touching its lowest reading in seven months in April and announcing the country's 2024 budget, which will contain some tax cuts and higher allocation for education and health. In the US, stocks ended mixed on Friday and closed later today for a holiday. Ryman Healthcare fell 1.28% after posting a 98% yoy plunge in its net profit for the year ended March. Other early decliners were South Port NZ (-1.96%), Ventia Services Group (-1.27%), Ebos Group (-0.93%), and Fisher

🇵🇪 Peru Q1 GDP Grows for 1st Time in 5 Quarters 

Peru's economy advanced by 1.4% yoy in Q1 of 2024, marking the first expansion in the GDP since Q4 of 2022, rebounding from a 0.4% contraction in Q4 of 2023. The increase was primarily boosted by a rise in domestic demand of 2.1% due to higher gross fixed investment and total consumption; and exports of goods and services (2.9%). There was a 5.9% growth in gross fixed capital investment, driven by construction growth (5.1%) and higher purchases of machinery and equipment (7.0%). Meanwhile, private consumption expanded by 1.2% due to rises in the consumption of goods and services. Government spending grew by 5.0%, mainly underpinned by growth in public administration and defense expenditure (8.3%). Net trade contributed positively to the GDP, with exports and imports climbing by 2.9% and 5.7%, respectively. On the production side, output grew for electricity, gas, and water (3.9%), construction (5.1%), and commerce activity (2.4%).

🇯🇵 Japanese Shares Gain Amid Ueda Remarks

The Nikkei 225 Index rose 0.2% to around 38,730 while the broader Topix Index gained 0.3% to 2,750 on Monday, recouping some losses from the previous session as investors reacted to the latest remarks from the central bank chief. BOJ Governor Kazuo Ueda said that it is necessary to re-anchor inflation expectations and warned that estimating the neutral interest rate accurately is challenging in Japan. Domestic shares also tracked gains on Wall Street Friday as chipmakers and other technology stocks continued to rally despite dimming hopes for Federal Reserve rate cuts. Japanese shippers led the charge, with strong gains from Kawasaki Kisen (4.9%), Mitsui OSK (4.1%) and Nippon Yusen (4.5%). Technology stocks also advanced, including Disco Corp (0.6%), Socionext (1.4%) and Renesas Electronics (1.9%).

🇨🇳 China Industrial Profits Grow 4.3% YoY in Jan-April

Profits earned by China's industrial firms rose by 4.3% yoy to CNY 2,094.69 billion in the first four months of 2024, the same pace as in the prior period.

Oil Holds Steady as OPEC Meeting Eyed 

WTI crude futures held steady near $78 per barrel on Monday as investors avoided making big bets ahead of an OPEC meeting on June 2, where major producers are expected to extend voluntary output cuts through the end of this year. OPEC said last week that it expects robust oil demand growth of 2.25 million barrels per day for 2024, while the IEA predicts a weaker growth of 1.2 million bpd. Markets will also watch demand trends as the summer driving season kicks off in the Northern Hemisphere. Elsewhere, investors look ahead to the US PCE price index report this week for clues on the path for Federal Reserve monetary policy, as well as Chinese PMI figures to further guide the demand outlook. Last week, oil prices tumbled more than 2% as strong US economic data and hawkish Fed minutes reinforced expectations that interest rate cuts will be delayed.

🇰🇷 South Korean Shares Rise to the Start the Week

The benchmark KOSPI rose 0.6% to around 2,702 points in early trade on Monday, as investors hunted for bargains after four consecutive sessions of losses following reduced expectations of an early rate cut by the US Fed. Among sectors, stocks of producer manufacturing posted the biggest increase, led by Doosan Enerbility, jumping 9.8%, after winning a supply order worth over $1.47 billion from US NuScale Power. Other notable gains were seen from SK Hynix (4.7%), Kia Corp (2.3%)