Asian Macro Initial Thoughts: BoJ rate decision in focus. Trump spoils peace efforts by the G7.

NZX 50 choppy initial trading did rally to 12,725 but now back to 12,700 level trading around flat

Overview.
Trump calls for the evacuation of Tehran and blocks a G7 push for peace. Whilst other members of the G7 push for a de escalation. Israel says it will continue its attacks until is achieve its goals. Looks like Trump is no longer looking for a Peace Prize. Tension in the G7 as Trump due to leave tonight (early) having called for Putin to be present at the meeting (although if he landed in Canada Putin would be arrested as there is an international warrant out for Putin’s arrest). Trump says he is needed in Washington due to Middle East tensions.

Interestingly the Sydney Morning Herald reports the Trump family unveils gold ‘Made in America’ phone, mobile service; he continues to ink deals despite ethical concerns that the US president could mould public policy for personal gain.

Worth noting on Monday the G7 provisionally agreed on a strategy to help protect the supply of critical minerals and bolster their economies, according to a draft statement seen by Reuters. The draft, which a source said had not yet been approved by U.S. President Donald Trump, also said minerals markets should reflect the real costs of responsible extraction, processing, and trade of critical minerals.

Today the Asia focus will be on BoJ rate decision ahead of the other Central Bank rate decisions this week.

Earnings this week include
Tuesday Ashtead Q4, Capita pre-close trading update, Jabil Q3, John Wiley Q4, Kenedix Office Investment Q4, La-Z-Boy Q4, Lennar Q2, RWS Holdings HY
Wednesday AO World FY, GMS Q4, Korn Ferry Q4, Speedy Hire FY
Thursday Cordiant Digital Infrastructure FY, NCC HY, Syncona FY, Urban Logistics Reit FY, Whitbread Q1 trading update, XPS Pensions FY

Friday Accenture Q3, Berkeley FY, CarMax Q1, Darden Restaurants Q4, Kroger Q1

Holdiays this week
Wednesday Cambodia closed for the Queen Mothers Birthday
Thursday US closed Juneteenth National Independence Day

Other Events
Friday the Paris Air Show opens which is likely to be influenced but the recent Boeing Air India crash.

Saturday is the Summer solstice commemorations, in which crowds gather at sites such as Stonehenge in the British county of Wiltshire to witness sunrise and London Climate Action Week kicks off

Housekeeping

On Monday I was on RTHK’s Money Talk with host Chloe Feng and Mark Michelson, Chairman, Asia CEO Forum, IMA Asia, talking about Israel/Iran, G7 prospect, tariffs and the China data dump Click the link below if you want to raise a topic or to listen to the programme.

https://www.rthk.hk/radio/radio3/programme/money_talk

Last Thursday afternoon I was on RTHK’s The Close, with Nitin Dialdas and Tariq Dennison of GFM Asset Management Interestingly he mentioned he looks at US, Europe then China and finally if he has time the UK, but feels the economy since Brexit is overvalued. If you want to listen to the show you can via the link below. Also if you have a topic or question for this week’s episode you can leave me a comment or leave it via the link.

https://www.rthk.hk/radio/radio3/programme/the_close

Looking for good Independent Research, Showcase Events, Introductions & Marketplace, Reports, blogs, trials, podcasts then click the link

https://www.eri-c.com/

It is MiFID II compliant, you can try Before You Buy, there is Research Evalution. and information can be shared across team or firm. It has Different Views at the Best Price. Buyers transact at offered prices or with vendor permission, by agreement. ERIC's industry low commission rates - charged only to sellers - allow both buyers and sellers to realise better net pricing simulataneously. The differentiated price discovery mechanism entertains private bids and negotiation (on or offline) to broaden demand capture and liquidity.

If you have any problems connecting, call or message me and I will sort your issue out.

For Example last recently Russell Napier was in conversation with Andy Rothman on the topic of Will Trump make China great again. Russell has covered Asia for year and Andy has a unique perspective on China, having lived and worked there for more than 20 years as an American diplomat and a sell-side macro strategist. Andy first went to China as a student in 1980, returned as Foreign Service Officer in 1984, joined CLSA in Shanghai in 2000, and then went to the buy side with Matthews Asia in 2014. This year, Andy founded Sinology LLC, advising institutional investors and corporate directors on the risks and opportunities in the Chinese economy, and on navigating the rising tensions in US-China relations. This follows on from Andy’s recent webinar after a recent visit to China in early April you can still go to the website to listen to that recording if you didn’t hear it live.

Mark Tinker recently posted the Latest thoughts from Market Thinker - 'The Ratchet and the Sausage Machine’. 'Trump the deal maker has learned the hard way that, to use arch Politician Tony Blair’s favourite phrase, “ Politics is the art of the possible”. Anyone who has seen the television series House of Cards will recognise the compromises and political wrangling needed to pass a Bill in the House. Trump’s Big Beautiful Bill (BBB) was primarily about preventing the sunsetting of the tax cuts that he passed in his previous term and thus was not so much about cutting taxes as preventing them rising.’

Musk’s DOGE campaign was about highlighting the ‘fat’ in the existing administration and hence make the case for Trumps Big Beautiful Bill. Which additionally Trump considers to benefit his enemies.

The result is a radical and possible stimulatory policy, with an unproven outcome but the covid experience suggests that giving more cash to US individuals results in them spending. He also touches on the implications of Section 899 which allows the US to tax foreigners if Trump feels their governments do things he doesn’t like.

You can find the whole article here

Market opening indications and data

New Zealand
NZX 50 choppy initial trading did rally to 12,725 but now back to 12,700 level trading around flat
Data out after the open
Food Inflation May 4.4% YoY vs 3.7% Apr (F/cast was 4%)
Due Later
1 year Bill Auction vs 3.24% prior
3 month Bill Auction vs 3.252% prior
6 month Bill Auction vs 3.208% prior
Global Dairy Trade Price Index 17 Jun vs -1.6% prior

Australia - No Data Due
ASX to open slightly higher, futures indicate up 5pts 0.06% at 8,565 with energy and mining stock weak. Middle East tensions remain high.

Japan
Market to open higher
Nikkei 225 Futures indicate up 210pts 0.55% at 38,570
Chicago Futures -50pts -0.13% at 38,590
Singapore Nikkei Futures up 80pts 0.21% at 38,425
Yen closed 144.65 in the US. Opening in Asia at 144.65 level.
Data Due late Morning
BoJ Interest Rate Decision - No change expected from current 0.5%

S Korea
Market to open higher as US stocks rebounded overnight.
Market closed higher Monday trade volume was heavy at 718.1 million shares worth 14.3 trillion won ($10.5 billion), with winners outnumbering losers 619 to 278. Retail and institutions net bought while foreigners net sold. The Won was quoted at 1,363.8 won against the greenback at 3:30 pm Monday, up 5.8 won from the previous session.
Data Due
Export Prices May -2.4% YoY vs 0.4% Apr revised from 0.7% (F/cast was 1.9%)
Import Prices May -5% YoY vs -2.6% Apr revised from -2.3% (F/cast was -2.7%)

Taiwan - No Data Due
Market to open higher as stocks rebound.

China - No Data due
Market to open higher
Golden Dragon Index closed up 150pts 2.07% at 7,383
Spot USD/CNY opening up 0.0011 0.02% at 7.1831
Spot USD/CNY lifted 11 bps to close at 7.1802 Monday (16th). As of 4:39 pm, USD/CNY in the night session added 14 bps. USD/CNH gained 71 bps to 7.1805, 3 bps below USD/CNY.

Hong Kong
HSI to open after the ADR’s closed flat -0.9pts at 24,061 but only HSBC, SHKP, Bank of China HK and Baba in the green.
HK Futures are indicating up 58pts 0.2% at 24,119
Turnover on Monday HK$229.241b vs HK$294.287b Friday,
Data due after market
Unemployment Rate May vs 3.4% Apr (F/cast is 3.2%)

Macau - No Data Due

Singapore - Data Due
Non-Oil Exports May MoM vs 10.4% Apr (F/cast is 7.3%)
Non-Oil Exports May YoY vs 12.4% Apr (F/cast is 4.5%)
MAS 12 Week Bill Auction vs 2.11% prior
MAS 4 Week Bill Auction vs 2.11% prior
Could get
Balance of Trade

Indonesia - No Data Due

Malaysia - Data Due
Inflation Rate
Coincident Index
Leading Index

Philippines - Data Due
Cash Remittances

Thailand - No Data Due
Myanmar - No Data Scheduled this week
Cambodia - No Data Scheduled this week

Vietnam - No Date Scheduled this week
Reuters reports The United States is pushing Vietnam in tariff talks to reduce the use of Chinese tech in devices that are assembled in the country before being exported to America, three people briefed on the matter said.

Vietnam is home to large manufacturing operations of tech firms such as Apple and Samsung (005930.KS), which often rely on components made in China. Meta and Google also have contractors in Vietnam that produce goods such as virtual reality headsets and smartphones. The Southeast Asian nation has been organising meetings with local businesses to boost the supply of Vietnamese parts, with firms showing willingness to cooperate but also warning they would need time and technology to do so, according to one person with knowledge of the discussions.

The Trump administration has threatened Vietnam with crippling tariffs of 46% which could significantly limit access for Vietnam-made goods to their main market and upend the Communist-run country's export-oriented growth model.

Vietnam has been asked "to reduce its dependency on Chinese high-tech," said one person familiar with the discussions. "That is part of the restructuring of supply chains and would in turn reduce U.S. dependency on Chinese components," the person added.

India - Data Out
Passenger Vehicle Sales May 0.8% YoY vs 5.5% Apr
After Market Monday
Balance of Trade May $-21.88B vs $-26.42B Apr (F/cast is -27.2B)
Exports May $38.73B vs $38.49B Apr (F/cast is 37.8B)
Imports May $60.61B vs $64.91B Apr (F/cast is 65B)

Europe
Eurozone ZEW Economic Sentiment Index
Germany ZEW Economic Sentiment Index & Current Conditions
France IEA Oil Market Report
United Kingdom - 5-Year Treasury Gilt Auction

United States
Futures opened Dow -94pts -0.22%, S&P -0.29% and NDX -0.39%
Data Due Retail Sales, Retail Sales Control Group, Retail Sales Ex Autos, Retail Sales Ex Gas/Auto Export & Import Prices, Redbook, Industrial Production, Capacity Utilisation, Manufacturing Production, Business Inventories, NAHB Housing Market Index, 5-Year TIPS Auction, API Crude Oil Stock Change. (FOMC meeting starts)

HEADLINES & NEWS

AUSTRALIA
A Qantas pilot passes out in cockpit minutes after landing in Sydney. The 737 aircraft was carrying 113 passengers and eight crew on a flight from Canberra.

Start-up boss to face trial for kidnapping, domestic violence. Paul Kevin Bennetts promised to transform the fortunes of Millennials, but behind closed doors, he allegedly stalked and abused a young woman.

JAPAN
PM Ishiba and U.S. President Trump did not reach a tariff agreement, Fuji TV reported on Tuesday. Slight -VE for sentiment.

SoftBank Group Corp (9984.T) is looking to raise nearly $4.9 billion in an unregistered overnight block sale of T-Mobile (TMUS.O) Bloomberg News reported on Monday. SoftBank is offering to sell 21.5 million shares for $224 to $228 each, Bloomberg said, citing the deal terms. Bank of America Corp is working on the deal. The sale represents a discount of more than 3% to T-Mobile's closing price of $230.99 on Monday, and the stake offered would represent about 1.9% of T-Mobile's outstanding shares, Reuters calculations showed.

The Bank of Japan will consider slowing reductions in its bond purchases next year under a quantitative tightening (QT) plan due on Tuesday, as the bank focuses on avoiding big market disruptions amid growing economic uncertainties. Those deliberations come as the BOJ faces fresh challenges in weaning the economy off a decade-long, massive stimulus that has kept interest rates ultra-low and left it with a balance sheet roughly the size of Japan's economy. At the same time, BOJ Governor Kazuo Ueda is likely to signal the bank's readiness in continuing interest rate hikes, as it weighs risks from U.S. tariffs against persistent domestic food inflation.

Mitsubishi Corp (8058.T) is in talks to acquire the U.S. shale production and pipeline assets of Aethon Energy Management for roughly $8 billion, a person familiar with the matter said on Monday. The deal, should it be struck, would give the Japanese conglomerate a substantial natural gas operation adjacent to the U.S. Gulf coast and the energy export facilities being developed along it. Talks between Mitsubishi and Aethon are ongoing, said the source, who cautioned that there was no guarantee a transaction would be agreed and spoke on condition of anonymity to discuss confidential deliberations.

ASICS (7936.T) will ramp up India manufacturing to 40% from 30% over the next few years to ensure steady supply, a top executive told Reuters, as the country's regulations force global brands to pause imports of footwear. The Indian government has mandated certain standards for various footwear segments, requiring both domestic and foreign manufacturers to obtain quality certifications. ASICS, which has also paused imports, said bringing in footwear from any country is not feasible without government certification. "To address this critical situation, we are strategically developing local production capabilities," ASICS India Managing Director Rajat Khurana said.

Nissan Motor (7201.T) CEO Ivan Espinosa said the automaker plans to reduce its stake in French partner Renault (RENA.PA) the Nikkei business newspaper reported on Monday. Nissan and Renault had said in March they had agreed to reduce their required minimum stake in each other to 10% from 15%. Under their agreement, any share sale has to be coordinated with the other party and includes a right of first-refusal.

SOUTH KOREA
President Lee Jae-myung arrived in Canada early Tuesday (Seoul time) to attend the Group of Seven summit, marking his first appearance on the global stage since taking office just under two weeks ago. At an impromptu news conference during his flight to Canada, Lee told reporters that he initially considered not immediately attending international conferences like G7 summit due to pressing domestic issues but changed his mind upon opinions that it is necessary to show the world that South Korea has returned to normalcy.

Samsung Biologics, announced Monday the launch of Samsung Organoids, a cutting-edge drug screening service designed to support corporate clients throughout drug discovery and development. Organoids are three-dimensional cell culture systems engineered to closely replicate the structure and function of human organs. Due to their high physiological relevance, organoids are rapidly emerging as a next-generation research model in drug development. They offer clinically meaningful insights into drug responses, making them valuable tools for lead compound selection, biomarker discovery and efficacy prediction.

Shares of South Korean arms makers rose sharply after Israel's attack on Iran, buoyed by the outlook that their exports could increase, even propelling the benchmark stock index Kospi to reach its over three-year high. Hanwha Systems, a major defense affiliate of Hanwha Group, closed daytime trading at 64,200 won ($47), up 18 percent from the previous session. Earlier in the day, the stock surged as high as 65,000 won, hitting the highest level since its listing on the Kospi in November 2019. Other major defense stocks also showed strong performances, with LIG Nex1 rising 5.32 percent, Hyundai Rotem gaining 6.32 percent and Hanwha Aerospace climbing 2.65 percent. Shares of each of the companies posted a fresh high.

Coupang said on Monday it will hold a “Rocket Jikgu Summer Black Friday” event, offering discounts of up to 70 percent on more than 20,000 products from over 800 global brands. The promotion runs throughout this week. Users can find major deals on popular items from Nike, Adidas, Skechers, Lenovo, Logitech and Xiaomi. Summer essentials like smart dehumidifiers, fans and travel goods are also featured. A “Daily Special Deal” section highlights limited-quantity bestsellers each day, including multivitamins, tablets and sneakers. Daily necessities from brands like Tiger Pavilion, SanDisk and Logitech are available for as low as 990 to 4,990 won. Summer staples like mosquito repellents, deodorants and storage containers are also on offer at affordable prices. Users can receive discount coupons of up to 30 percent once per day during the event. Those purchasing two or more eligible items are guaranteed additional savings, with coupons refreshed daily.

TAIWAN
President William Lai yesterday welcomed a delegation of US lawmakers and said he hoped that Taiwan-US military cooperation can expand to include joint research and development. Speaking at the Presidential Office, Lai thanked US Representative Ami Bera, cochair of the Congressional Taiwan Caucus, for leading the all-Democratic delegation. Lai said that Bera last visited in January last year, shortly after Taiwan’s presidential election, to demonstrate “support for Taiwan’s democracy.”

Taiwan’s economy is faring better than expected so far this year, but growth momentum might not hold in the second half, as mounting trade frictions, currency appreciation and sluggish domestic demand weigh on the outlook, Cathay Financial Holding said yesterday. Working with researchers from National Taiwan University, the conglomerate kept its growth forecast for this year unchanged at 2.8 percent, as exports were stronger than expected, but the momentum might cool sharply once front-loading shipments fade, National Central University economist Hsu Chih-chiang said on behalf of the research team. “Taiwan’s exports outperformed expectations, thanks to active inventory building by global clients to cope with potential US tariff hikes,” Hsu said.

Pegatron Corp, one of Apple Inc’s iPhone assemblers, is to spend US$85 million to establish a new US subsidiary to meet customer demand for made-in-US products, after its board approved the plans on Friday. The subsidiary would add new production capacity for servers and any products that customers request be made in the US to avoid potential tariffs, a Pegatron official told the Taipei Times by telephone yesterday. US President Donald Trump on April 2 announced “reciprocal” tariffs for Taiwan and many other countries, which were later paused for 90 days.

Exposure to China among Taiwanese financial institutions — including banks, insurance companies, securities and futures brokerages, and investment trusts — reached a record-low NT$876.95 billion (US$29.71 billion) at the end of April, Financial Supervisory Commission data showed on Sunday. Their exposure was down NT$165.75 billion, or 15.89 percent, from a year earlier amid concerns over a slowing Chinese economy, rising local government debts and a multiyear real-estate crisis, as well as persisting geopolitical risks, the commission said. In terms of declines in total exposure, the banking sector experienced the largest drop, as Taiwanese banks cut their combined exposure — including lending, investments, and interbank loans and deposits — by NT$145.27 billion, or 15.16 percent, to NT$813.2 billion from a year earlier, the data showed.

Hon Hai Research Institute, the research arm of Hon Hai Precision Industry, unveiled critical artificial intelligence (AI) server-related single-chip integrated circuit technology as well as high-performance power management solutions early this month in Japan, the company said yesterday. In a statement, iPhone assembler and AI server maker Hon Hai, also known as Foxconn Technology Group said these technologies have been recognized by the 37th International Symposium on Power Semiconductor Devices and ICs held in Kumamoto from June 1 to 5. Hon Hai said the single chip integrated circuit technology was jointly developed by the research institute’s Semiconductor Research Center director Kuo Hao-chung and his colleague Hsiao Yi-kai, National Yang Ming Chiao Tung University associate professor Wu Tien-li and professor Chen Po-hung and National Central University associate professor Tu Chang-ching.

Nvidia Corp CEO Jensen Huang has been pitching the idea of “sovereign artificial intelligence” (AI) since 2023. Europe is starting to listen and act. The concept is based on the idea that the language, knowledge, history and culture of each region are different, and every nation needs to develop and own its AI. Last week, Huang toured Europe’s major capitals — London, Paris and Berlin — announcing a slew of projects and partnerships, while highlighting the lack of AI infrastructure in the region. In a place where leaders are increasingly wary of the continent’s dependency on a handful of US tech companies and after drawing ire from US President Donald Trump, Huang’s vision has started to gain traction.

CHINA
The People's Bank of China (PBOC) will auction the fourth tranche of central bank bills for 2025 in Hong Kong this Wednesday (18th), with a term of 6 months and an issuance volume of RMB30 billion.

The 45th meeting of the chairpersons of the Standing Committee of the 14th National People's Congress (NPC) was held at the Great Hall of the People in Beijing Monday morning (16th), according to the Xinhua News Agency. Chairman Zhao Leji presided over the meeting. The meeting decided that the 16th meeting of the 14th NPC Standing Committee will be held in Beijing from next Tuesday (24th) to next Friday (27th). The chairpersons meeting suggested that the 16th meeting of the 14th NPC Standing Committee review the draft amendments to the Law on Penalties for Administration of Public Security, the draft amendments to the Anti-unfair Competition Law, the draft law on Response to Public Health Emergencies, the draft amendments to the Maritime Law, the draft law on publicity and education for law, the draft amendments to the Fisheries Law and the draft amendments to the Civil Aviation Law, etc..

China's factory output growth hit a six-month low in May, while retail sales picked up steam, offering temporary relief for the world's second-largest economy amid a fragile truce in its trade war with the United States. The mixed data comes as China's economy strains under U.S. President Donald Trump's tariff onslaught and chronic weakness in the property sector, with entrenched home price declines showing no signs of reversing. Many, I think, suspect the quality of the data, but verification by third parties has become increasingly difficult in China and that is leading to investor shun Chinese opportunities.

HONG KONG

Economy
The volume of Hong Kong's total exports of goods and imports of goods increased by 12.3% and 13.4% YoY respectively in April 2025, as announced by the Census and Statistics Department (C&SD). Comparing the first four months of 2025, the volume of Hong Kong's total exports of goods and imports of goods increased by 9.6% and 8.9% respectively. On the price front, the prices of total exports of goods and imports of goods rose by 2.2% and 2.1% YoY respectively in April 2025. the prices of total exports of goods and imports of goods both increased by 2% in 4M25 as compared with the same period in 2024.

IPO
The stabilization period for the global offering of CATL (03750.HK) ended on June 14. During this period, the stabilization agent, China International Capital Corporation Hong Kong Securities, undertook actions including the over-allocation of 20.3367 million shares in the international offering (equivalent to around 15% of the total number of shares available for subscription under the global offering). The overall coordinator fully exercised the over-allotment option for a total of 20.3367 million H-shares at a price of HKD263 per share.

Buybacks
TENCENT (00700.HK) repurchased Monday (16th) 985,000 shares of the company at a price ranging from HKD505 to HKD511 per share, involving a total of HKD500 million. Since the buyback authorization resolution was approved on May 14, the group has cumulatively repurchased 20.573 million shares, accounting for approximately 0.22389% of the issued shares.

AIA (01299.HK) announced that it had repurchased Monday (16th) 3.5 million shares of the company on the Hong Kong Stock Exchange at prices ranging from HK$68.15 to HK$69.65 per share, involving a total of HK$241 million. Since the buyback authorization resolution was passed on May 23, the company has cumulatively repurchased 59.116 million shares, accounting for 0.5527% of the issued share capital.

HSI Short Selling Monday 15.6% vs 17% Friday
Top shorts Xinyi Solar (968) 49%, SHKP (16) 46%, Bud APAC (1876) 45%, Hang Seng Bank (11) 43%, Chow Tai Fook (1929) 42%, Bidu (9888) 50%, Hengan (1044) 37%, Xinyi Glass (868) 36%, ZTO Express (2057) 35%, BYD (1211) 35% CM Bank (3968) 35%, Wuxi Apptec (2359) 35%, NTES (9999) 33%, China Rex Mixc (1209) 32%, Li Ning (2331) 31%, Li Auto (2015) 31%, Zijin Mining (2899) 30%, Sinopharm (1099) 29%, Henderson Land 27%, New Oriental (9901) 26%, Wharf REIC (1997) 26%, HK & China Gas (3) 26%, HaierSmarthome (6690) 24%. ,

WATCH

S&P Global Ratings' report reaffirmed CHINA VANKE (02202.HK)'s long-term issuer rating of B-, with a Negative outlook, and removed the stock from the CreditWatch List. The group's annual contract sales were expected to subside 40% YoY to RMB146 billion, and the group's operating cash flow was anticipated to barely break even. To maintain liquidity, the rating agency assumed the company will continue to make minimal land purchases over the next year, which will undermine its competitive position. Major shareholder Shenzhen Metro has provided nearly RMB15 billion in loans since the beginning of the year, which the agency believed has been used to repay some bonds.

CHOW TAI FOOK (01929.HK) is seeking to issue HKD7.85 billion convertible bonds due 2030, Bloomberg reported, citing documents. The report mentioned that the convertible bonds will have an annual coupon rate of 0-0.5%, with interest paid semi-annually, and the initial conversion premium will be 35-45%. UBS will serve as the sole bookrunner.

Based on comprehensive data from flight, accommodation and ticket or experience bookings, there was a significant increase in Hong Kong's summer peak season inbound and outbound tourist traffic, TRIP.COM-S (09961.HK) said. Data from the Group's Trip.com platform shows that overall outbound travel hotel bookings from July to August 2025 rose compared to the same period last year. Flight booking data indicates that short-haul destinations in Asia like Japan, Taiwan, Thailand, South Korea and Southeast Asia continued to be the top choices for Hong Kong people, while demand for long-haul travel also increased, with flight bookings to New Zealand, Australia and European countries such as Italy and Spain growing by approx. 100% compared to the same period last year. In recent months, Hong Kong has hosted concerts by artists like Ayumi Hamasaki and Jay Chou, as well as the 20th anniversary celebration party of Hong Kong Disneyland. Benefiting from the government's promotion of the mega event economy, ticket bookings on the platform grew by 25% YoY during the period. Eddy Yip, Director of Product and Marketing for Hong Kong and Taiwan at Trip.com, said that he is pleased to see the vigorous growth of concert and mega event-related travel in Hong Kong, and will continue to expand the supply of entertainment & mega event tickets and travel products to meet travelers' needs. -VE HK economy as people look to spend their money outside HK.

CHINA SHENHUA (01088.HK) announced that its commercial coal production in May was 28 million tons, a YoY decrease of 1.4%. Coal sales volume was 32.5 million tons, down 10.7% YoY. The aggregate commercial coal production for the first four months of this year was 138 million tons, a YoY decrease of 1.7%. Coal sales volume was 167 million tons, down 12.3% YoY.

CATHAY PAC AIR (00293.HK) has launched direct flights between Hong Kong and Munich. It has also announced the start of direct services to and from Brussels beginning in August. According to CATHAY PAC AIR, there will be nearly 100 pairs of weekly round-trip flights to 12 destinations like Amsterdam, Barcelona, and Frankfurt across Europe during this summer's peak season.

Monday closings in EUROPE & US
DAX 0.78%, CAC 0.75%, FTSE 0.28%
European markets opened slightly higher and traded higher through the day shrugging off Iran/Israel concerns.

Entain up 11% to their highest level for more than a year, after the gambling group hiked full-year guidance for its North American sports betting and online gaming arm BetMGM in an unscheduled update.

The European Central Bank should neither commit to pausing its interest rate cutting cycle, nor to further rate reductions, Bundesbank President Joachim Nagel said Monday. Instead it should remain vigilant and stay flexible. Energy stocks remained elevated but Healthcare and F&B remained weak.

Renault -8.7% after the carmaker announced Sunday that industry veteran Luca de Meo would step down as CEO. But Kering 11.8% on talk that de Meo is heading to the French fashion house next.

Airbus expects more muted aircraft orders at this week’s Paris Air Show as defense concerns rise to the fore and last week’s deadly Air India crash casts a shadow over the event.

DOW 0.75%, NDX 1.52%, S&P 0.94%, Russel 2K 1.12%
US markets opened higher and trended higher initially but then drifted lower after the first hour. Oil prices cooled as Iran urges several Middle Eastern countries the push the US to call on Israel for a ceasefire. Stocks rebounded across the board.

Banks JPMorgan Chase 2.04%, Citigroup 2.24% Wells Fargo 1.09%, Amex 2.23%
Ecommerce Meta 2.9%, Apple 1%, Amazon 1.89%, Netflix 1.09%, Disney 1.31%, Zoom Comms 1.62%, Alphabet 1.17% and Microsoft 0.88%,
Tech NXP Semi 3.14%, Nvidia 1.92%, Micron 3.67%, AMD 8.81%, Skyworks 1.02%
Industrial/Discretionary Boeing 0.69%, Caterpillar 1.51%, Simon Property 0.61%, Kohl’s 9.98%, Gap 1.44%, United Airlines 6.11%, Carnival 6.38%, Wynn Resorts 5.25%,
Auto Ford 1.82%, GM 1.27%, Tesla 1.17%,
Energy Chevron 0.08%, Exxon Mobil 0.32%,
Consumer Staples Campbell Soup -1.62% General Mills -0.06%, JM Smucker -0.38%

DAILY DATA
USD wavers, Bitcoin 2.12% at 107,683.67, VIX -8.21% at 19.11
US T10 up 2 bpts to 4.45% and T2 up 1 bpts at 3.973% T 30 unch at 4.959%
OIL Brent -1.35%, WTI -1.66% on signs that Iran is seeking a ceasefire
Gold -0.14% hit an interlay high Monday, Silver -0.24%, Copper -0.48% Platinum -1.26%, Palladium 0.02%.