· Australian dollar surges as investors focus on recovery from pandemic
Riskier currencies rose against the dollar on Monday as investors looked to positive signs from China’s coronavirus recovery and wagered on an easing in China-U.S. tensions.
The trade-sensitive Australian dollar surged 1% to a three-month high of $0.6742 to lead broader gains that put the dollar close to an 11-week low on a basket of currencies.
U.S. President Donald Trump made no move to impose new tariffs on China during a news conference on Friday where he outlined his response to Beijing’s tightening grip over Hong Kong.
Against a basket of currencies the dollar fell 0.2% to 98.031, close to an 11-week low of 97.944 touched last week.
Elsewhere the euro rose 0.2% to $1.1135, just below a two-month high of $1.1145, as investors drew confidence from the European Union’s plans for a coronavirus recovery fund.
The pound hit a three-week high of $1.2414 as Britain moves out of lockdown. The Chinese yuan was 0.2% stronger at 7.1996, catching up with Friday’s relief rally in offshore trade on hopes for easing China-U.S. tensions.
· Pandemic set to shrink Australian economy in first quarter, worse yet to come
Australia’s economy is expected to have shrunk in the first quarter as the global coronavirus pandemic is set to tip the country into its first recession in three decades.
A Reuters poll of 15 economists forecast the A$2 trillion economy to contract by 0.3% in the three months to March - the first quarterly decline in nine years.
Annual growth likely slowed to 1.4% from 2.2% in 2019, the survey showed.
If the economy contracts in both the March and June quarters it would be Australia’s first technical recession since the early 1990s.
· Asia's factory pain worsens as China's recovery fails to lift demand
Asia’s factory pain deepened in May as the slump in global trade caused by the coronavirus pandemic worsened, with export powerhouses Japan and South Korea suffering the sharpest declines in business activity in more than a decade.
China’s Caixin/Markit Manufacturing Purchasing Managers’ Index (PMI) hit 50.7 last month, marking the highest reading since January as easing of lockdowns allowed companies to get back to work and clear outstanding orders.
· Singapore hopes to reopen 80% of its economy in June as coronavirus restrictions lift, says minister
Singapore expects to have most, if not all, of its economy back on track by June, trade minister Chan Chun Sing said on Monday.
Singapore imposed restrictions in early April to blunt the spread of the outbreak, and temporarily closed schools while asking most offices to switch to remote work. Starting Tuesday, those measures are set to be eased in three phases.
· A private survey shows China’s manufacturing activity unexpectedly expanded in May
A private survey showed manufacturing activity in China expanded for the month of May.
The Caixin/Markit Manufacturing Purchasing Manager’s Index came in at 50.7 for May. PMI readings above 50 indicate expansion, while those below that level signal contraction.
Analysts polled by Reuters had expected the May PMI number to come in at 49.6 compared to the April reading of 49.4.
Data suggested that production recovered faster than demand, and the rate of expansion for output was at its fastest since January 2011. Meanwhile, demand was subdued with total new work falling in May.
· Japan's May factory activity sinks as pandemic lockdowns hit demand: PMI
Japan’s factory activity shrank at the fastest pace since March 2009 in May, a private sector survey showed on Monday, as manufacturers widely struggled with the demand blow from the coronavirus pandemic.
The final au Jibun Bank Japan Manufacturing Purchasing Managers’ Index (PMI) fell to a seasonally adjusted 38.4 from 41.9 in April, its lowest since March 2009, and matching a preliminary reading last month.
· Japan considering re-opening door to some foreigners: media
Japan is considering re-opening its borders to travellers from selected countries which have low levels of coronavirus infections, as it begins to ease restrictions put in place earlier this year to control the outbreak.
As schools, cinemas, sports clubs and department stores reopened in the nation’s capital Tokyo on Monday, media have reported that the government is also planning to allow travellers from Thailand, Vietnam, Australia and New Zealand into the country in the coming months.
There was no immediate comment from the foreign ministry.
Around 17,000 coronavirus cases have been confirmed in Japan as of early Monday, with roughly 900 deaths.
· Japan says Hong Kong situation deeply concerning
The situation in Hong Kong is deeply concerning and stability is important, Japan’s top government spokesman said on Monday regarding China’s decision to impose a new security law on Hong Kong.
The spokesman, Chief Cabinet Secretary Yoshihide Suga, was speaking at a regular news conference.
· South Korean exports fall for third month but at a slower pace
South Korean exports tumbled in May for the third straight month, though at a slower pace, as extended global lockdown measures to contain the wider spread of the coronavirus weighed on worldwide demand.
Shipments contracted 23.7% year-on-year in May, trade ministry data showed on Monday, slower than a 25.1% drop in April but worse than a 22.1% plunge tipped in a Reuters survey.
· Oil prices edge up ahead of upcoming OPEC+ meeting
Oil prices were little changed on Monday, with the Organization of the Petroleum Exporting Countries (OPEC) considering meeting as soon as this week to discuss whether to extend record production cuts beyond end-June.
Brent crude LCOc1 was unchanged at $37.84 a barrel, in the first day of trading in the contract with August as the front month.
West Texas Intermediate (WTI) crude futures CLc1 for July delivery were at $35.53 a barrel, up 4 cents, or 0.1%, by 0629 GMT.
The price falls come after front-month Brent and WTI prices posted their strongest monthly gains in years in May. Gains were boosted by OPEC crude production dropping to its lowest in two decades, with demand expected to recover as more nations emerge from coronavirus lockdowns.
Reference: Reuters, CNBC, CNN, Worldometers
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