Australian Dollar Trades at 5-Week Top
The Australian Dollar added 0.00293 points or 0.38% to 0.77745 against the US Dollar on Monday, trading near 5-week highs as easing long term bond yields and sustained selling pressure in the Greenback boosted the risk sensitive Aussie. Local 10-year bond yields lifted slightly from 8-week lows to 1.684%, while US 10-year rates were at 6-week lows of 1.572%. Meantime, recent local preliminary data showed that the IHS Markit Services PMI inched up to a record 58.8 in April, driven by the fastest expansion in new business inflows on record, while the manufacturing PMI also jumped to a record high. Markets will be focused on local inflation figures and the US Federal Reserve Open Market Committee meeting later this week.
Singapore Manufacturing Growth Beats Estimates
Singapore’s manufacturing production rose by 7.6% yoy in March, exceeding market forecasts of a 3% growth and after a marginally revised 16.5% surge a month earlier. This was the fifth straight month of increase in industrial output, as a recovery in the economy from the COVID-19 pandemic gained traction. Output grew further for electronics (33.7% vs 30.2% in February), mostly led by semiconductors (37.8%); chemicals (9.5% vs 2.4%); precision engineering (5.6% vs 16.1%), of which machinery & systems (8.3%). Meanwhile, production shrank for general manufacturing industries (-0.5% vs -6.8%) transport engineering (-20.6% vs -21.6%) and biomedical manufacturing (-6.6% vs 22.1%) mainly due to pharmaceuticals (-9.6%). On a monthly basis, manufacturing output unexpectedly fell by 1.7%, the first drop in five months, missing consensus of a 2.2% gain.
Japan Coincident Index Revised Higher
The index of coincident economic indicators in Japan, which consists of a range of data including factory output, employment, and retail sales, was revised higher to 89.9 in February 2021, compared with a preliminary estimate of 89.0 and after an upwardly revised of 91.7 in the previous month, amid the launch COVID-19 vaccination programme.
SENSEX Climbs 1.4%
The BSE SENSEX jumped 654 points or 1.4% to 48,535 in early deals on Monday, as signs that the world economic recovery was well on track offset fears about a resurgence of local COVID-19 cases. US data showed Friday that flash manufacturing PMI in April hit its highest since the series started in May 2007, while new home sales climbed to a more than 14-1/2-year high in March. Meantime, there were 352,991 new virus cases in India on Monday, a fifth straight day of record jump, as the increase overwhelmed its healthcare system and prompted nations like the US to offer aid. Market participants now look at the release of Q1 US GDP data and the US FOMC meeting later in the week. ICICI Bank gained 6.2% to a near six-week high after reporting a more than a three-fold surge in its Q1 profit. Reliance Industries added 3% after the company and BP Plc announced the start of production from a gas field off the east coast of India.