Asian markets were mixed ahead of the crisis central bank meetings

Hong Kong-listed shares of Chinese electric car makers rose after that Niu said It will cut prices by 30,000 yuan ($4,198.74) for all models from June 12th.

The move comes a month after the electric car company’s CEO, William Lee, told CNBC in an interview that Nio will not join the “price war” and will cut prices like its US rival Tesla.

Nio shares were up nearly 6% in afternoon trading Monday, and Xpeng shares were up 11%.

The Bank of Japan is likely to maintain its ultra-easy monetary policy when it meets later this week. Reuters reported.

Citing unnamed sources, Reuters reported that the Bank of Japan may also “indicate that inflation is exceeding its expectations.” This may lead the central bank to raise its inflation outlook in July when it conducts a quarterly review.

But the sources also told Reuters that raising their view of inflation, should it occur, “is unlikely to automatically lead to a hike in interest rates.”

Previously, Bank of Japan Governor Kazuo Ueda maintained his position that very loose policy is needed for wages to grow sustainably alongside inflation.

– Lim Hwi Ji

Japanese health care and technology stocks led gains on the Topix index Monday morning, led by drug maker Daiichi Sankyo trading 2.44% higher and Sony Group rising 1%.

Shares of Japanese tech giant SoftBank Group rose more than 2%, near their highest levels since February.

Other top gainers included electronics giant Sony, as well as Honda Motor and Toyota Motor Corp.

Wholesale prices in Japan It rose 5.1% in May from the previous year, just below the 5.8% recorded in April.

The increase in the producer price index was the slowest rate since July 2021, and less than estimates of economists polled by Reuters, which had forecast a 5.5% rise.

On a monthly basis, wholesale prices fell 0.7%, sharply less than the 0.2% expected by Reuters.

– Lim Hwi Ji

There’s a risk that stocks could drop from here, says Paul Christopher, head of global market strategy at the Wells Fargo Investment Institute.

“There is probably more downside risk in stocks at this point (aka don’t chase this stock rally),” he told CNBC. “The markets are very satisfied in our opinion.”

Explain why.

CNBC Pro subscribers can read more here.

– Wizen tan

Global central bank meetings will be in the spotlight this week, including the US Federal Reserve, the Bank of Japan, as well as the European Central Bank.

On Monday, Japan’s producer price index and China’s new yuan loans are scheduled to be released. Consumer confidence in Indonesia, retail sales in Malaysia, industrial production and inflation rates in India will also be published.

Tuesday will be the market holiday in South Korea and Indonesia will publish retail sales for the month of April. The US Consumer Price Index for May will be released as the Federal Open Market Committee (FOMC) convenes on the 13th and 14th.

South Korea’s import and export prices for May will be released on Wednesday along with the unemployment rate. China announces its foreign direct investment for the month of May. New Zealand is due to release current account data for the first quarter.

A slew of economic data will be released from China on Thursday, including industrial production, retail sales, the unemployment rate and house prices for May.

New Zealand will publish its GDP for the first quarter of this year also on Thursday, with Japan’s trade balance for May and machinery orders for April due on the same day as the central bank meeting begins. The Central Bank of the Eurozone will announce its latest interest rate decision overnight.

On Friday, Singapore’s non-oil domestic exports for May will be published and the Bank of Japan will conclude its central bank meeting.

– Jihe Lee

US Treasury yields rose on Friday as investors looked forward to the Federal Reserve’s monetary policy meeting on June 13-14, when officials will announce a new interest rate decision.

Uncertainty about whether the central bank will continue or halt its campaign to raise interest rates has spread recently, but jobs data released on Thursday led investors to believe that the Fed will not raise interest rates again next week.

At 4:24 a.m. ET, the yield on the 10-year Treasury note rose nearly four basis points, to 3.7529%. The two-year Treasury yield was trading up more than three basis points, at 4.5556%.

– Sophie Kiderlin

– Hakyung Kim, Gina Francola

Corporate earnings for the S&P 500 are expected to post a third consecutive decline in the second quarter, according to an estimate Friday from FactSet.

Earnings are expected to decline 6.4% from a year ago during the April-June period. That would be the largest decline since the pandemic-ridden second quarter of 2020 and worse than the 2.1% decline in the first quarter.

On March 31, FactSet predicted a decline of 4.8% in the quarter. Since then, 66 companies have issued negative earnings guidance while 44 companies have issued a positive outlook.

FactSet’s John Butters said the company expects to turn around earnings in the second half of the year, up 0.8% in the third quarter and a solid 8.2% as the year ends.

– Jeff Cox