Stock Market Update

The S&P 500 futures currently trade 42 points below fair value. 

Equity indices in the Asia-Pacific region had a mostly lower showing on Wednesday with South Korea's Kospi (-4.5%) sliding toward its low from Friday. Japan's Ministry of Finance sold 30-yr JGBs to weak demand, but the cash market held up well despite the poor sale. Japan's largest banks plan to launch live stablecoin transactions in fiscal 2026/27. There was some ongoing focus on China's reported plan to spend nearly $300 bln on building data centers over the next five years. Taiwan Semiconductor Manufacturing reported a 30% yr/yr increase in its revenue for May.

• In economic data:
  • China's May CPI -0.1% m/m (expected -0.2%; last 0.3%); 1.2% yr/yr (expected 1.3%; last 1.2%). May PPI 3.9% yr/yr, as expected (last 2.8%)
  • Japan's May PPI 0.9% m/m (expected 0.5%; last 2.8%); 6.3% yr/yr (expected 5.6%; last 5.3%)
  • Australia's April Building Approvals -3.4% m/m, as expected (last -10.5%); 10.2% yr/yr, as expected (last 9.0%). April Private House Approvals -1.0% m/m, as expected (last 0.5%)

---Equity Markets---

• Japan's Nikkei: -1.9%
• Hong Kong's Hang Seng: -0.6%
• China's Shanghai Composite: -0.4%
• India's Sensex: +0.1%
• South Korea's Kospi: -4.5%
• Australia's ASX All Ordinaries: +0.4%

Major European indices trade mostly lower. Today's data flow was on the light side, but there was also a report from the German Institute of Economic Research that the domestic economy is expected to contract in Q2 and Q3.

• In economic data:
  • Italy's April Industrial Production 0.5% m/m (expected 0.0%; last 0.6%); 1.3% yr/yr (last 1.4%)

---Equity Markets---

• STOXX Europe 600: -0.1%
• Germany's DAX: -0.5%
• U.K.'s FTSE 100: -0.1%
• France's CAC 40: -0.2%
• Italy's FTSE MIB: +0.1%
• Spain's IBEX 35: -0.1%