Japan Data Concerns
The Nikkei 225 index reacted to the release of China’s official Manufacturing Purchasing Manager’s Index for May. According to data released on Monday, China’s official manufacturing Purchasing Manager’s Index for May, came in at 51.0. economic analysts expected a 51.1 reading for the index. This was a slight decrease from April’s 51.12 reading. Input costs for manufacturers jumped to its highest in a decade.
Japan’s retail sales recorded a 12% high in April compared with last year where sales had dropped. However, the retail sales data was in contrast with a median market forecast for a 15.3 per cent gain. Japan’s Industrial Output rose in April due to the high demand for goods from China and US. Consumer spending increased due to the base effects from the Corona virus pandemic last year.
Factory output in Japan increased by 2.5% in May. Despite contractions in cars and transportation equipment output, a higher production of general purpose and electrical machinery generated gains.
The Japanese Yen traded at 109.68 per dollar. This was after the Japanese Yen recorded weak results last week to levels above 110 against the greenback.
Asian treasury yields tumbled below 1.60%. There will be no Treasuries cash trading on Monday in both the United States and the United Kingdom. The U.S will be celebrating the Memorial Day Holiday while the U.K celebrates the Spring Bank Holiday.
The Nikkei 225 index also reacted to Bitcoin’s decline. Bitcoin tumbled 7% below $35,000 after a slump on Friday. Bitcoin prices had surged 10% last week on Saturday only to dive 18% the next day. Haruhiko Kuroda, Governor at the Bank of Japan (BOJ) warned about token’s volatility and speculative trading. This happened after prices across digital tokens took hit.
Nikkei 225 Movers
Advantest Corp and Astellas Pharma Inc are among the best performers in the Nikkei 225 index. Each of the companies recorded a 1.65% increase. Advantest Corp was ranked the best supplier in Chip-making equipment. Pacific Metals was also among the top performers with a 1.20% high.
Among the worst performers in the index was NTN Corp which had slumped 4.95%. Other drags include Credit Saison, Shinsei Bank, Fukuoka Financial Group, among others.