Markets Overview

  • ASX SPI 200 futures up 0.3% to 8,507.00
  • Dow Average up 0.5% to 42,519.64
  • Aussie down 0.5% to 0.6463 per US$
  • US 10-year yield rose 1.3bps to 4.4518%
  • Australia 3-year bond yield fell 1.2 bps to 3.31%
  • Australia 10-year bond yield fell 0.9 bps to 4.26%
  • Gold spot down 0.8% to $3,353.47
  • Brent futures up 1.5% to $65.58/bbl

Economic Events

  • 09:00: (AU) May S&P Global Australia PMI Composite, prior 50.6
  • 09:00: (AU) May S&P Global Australia PMI Services, prior 50.5
  • 11:30: (AU) 1Q GDP YoY, est. 1.5%, prior 1.3%
  • 11:30: (AU) 1Q GDP SA QoQ, est. 0.4%, prior 0.6%

Asian stocks will likely draw support from US data showing the country’s labor market is holding up despite concerns about risks stemming from President Donald Trump’s tariff war. US shares and the dollar rose.

Equity-index futures pointed to advances in Sydney, Tokyo and Hong Kong, after a bounce in tech giants helped the S&P 500 add 0.6%. Just days ahead of the US payrolls report, an unexpected increase in job openings buoyed sentiment, helping to offset earlier losses after the OECD said Trump’s combative trade policies have tipped the world economy into a downturn, with the US among the hardest hit.

The rise in job openings reinforced the Federal Reserve’s assertion that the labor market is in a good place. While some economists fear a more notable weakening in coming months under the weight of tariffs, that hasn’t shown up in the data yet, supporting officials’ posture to keep rates steady.

The higher-than-expected job openings number “is a good sign for the economy, as many were worried that the tariff uncertainty was weighing too heavily on businesses,” said Chris Zaccarelli at Northlight Asset Management.

The swaps market continues to price in two Federal Reserve rate reductions this year beginning in October. However, traders are ramping up bets that hedge against dramatic shifts in the path as questions on the economic impact of Trump’s administration evolving policies persist.

On the trade front, the US reiterated that Trump and Chinese President Xi Jinping will talk “very soon.” The administration is actively monitoring China’s compliance with the Geneva trade agreement, White House Press Secretary Karoline Leavitt said.

The Office of the US Trade Representative has sent letters to trading partners to remind them of an upcoming deadline in negotiations, according to the White House. Commerce Secretary Howard Lutnick said he’s “very optimistic” about prospects for a deal between the US and India.

In South Korea, opposition candidate Lee Jae-myung is likely to make a phone call to Trump later on Wednesday, after winning presidential elections that are expected to mark a turning point for the nation after six months of chaos. Lee has said policymakers shouldn’t rush into a deal with the US.

Meanwhile, Trump signed a directive raising steel and aluminum tariffs to 50% from 25% starting Wednesday, following through on a pledge to boost import taxes to help domestic manufacturers. Prices for the metals in the US surged on Monday.

In other commodities, oil steadied after gaining for two days.