Japan 20-Year JGB Auction

Germany PPI MoM

Germany PPI YoY

United Kingdom PPI Core Output MoM

Indonesia’s IDX Composite climbed 54 points or 0.9% to 6,429 in Wednesday morning trade, snapping a six-session slide as bargain hunters stepped in after the benchmark hit a 13-month low the day before. Meanwhile, President Prabowo is set to present the 2027 budget framework to parliament later today, while the finance ministry reportedly plans daily IDR 2 trillion injections into the bond market to stabilize the rupiah, curb outflows, and ease volatility. Bank Indonesia, under pressure as the currency hovers near repeated historic lows, signaled a tilt toward pro-stability policy ahead of its meeting conclusion today. Gains were tempered by inflation risks from higher oil prices, despite April inflation staying mild. Meanwhile, U.S. stock futures weakened as Treasury yields climbed while tensions between Washington and Tehran lingered. Standout movers included Japfa Comfeed (4.4%), Timah (3.4%), Telkom Indonesia (3.2%), and Dian Swastatika Sentosa (2.7%).

Indonesia Shares Recover from 13-Month Low

China’s 10-year government bond yield fell to 1.74% on Wednesday, extending declines from the previous session and hitting a one-month low, as the People’s Bank of China maintained an accommodative monetary policy stance amid weakening economic momentum. The PBoC kept the one-year loan prime rate (LPR) unchanged at 3% and the five-year LPR at 3.5%, maintaining both at historically low levels for a twelfth consecutive month in May. The decision came despite mounting signs of slowing domestic activity, with industrial output growth easing to its weakest pace since July 2023 and retail sales expanding at its slowest rate since December 2022. The softer economic data reinforced expectations for additional stimulus, with investors now closely watching the Communist Party’s Politburo meeting in July. Meanwhile, both consumer and producer inflation accelerated, driven largely by higher energy prices and ongoing supply-chain disruptions tied to the conflict.

China 10-Year Government Bond Yield at 1.74percent

Japan’s 10-year government bond yield held around 2.79% on Wednesday, hovering at its highest level since September 1996 as strong economic growth data and mounting concerns over an energy-driven inflation shock reinforced expectations for a near-term interest rate hike from the Bank of Japan. Recent figures showed Japan’s economy expanded 0.5% quarter-on-quarter in the first quarter, beating market expectations of 0.4% and marking the fastest pace of growth since the third quarter of 2024. Adding to hawkish sentiment, the prolonged Middle East conflict has effectively kept the strategic Strait of Hormuz closed to shipping traffic, driving oil prices higher and intensifying global inflationary pressures. Markets are speculating that the BOJ could raise rates as soon as next month following hawkish signals from policymakers. Investors are also awaiting Japan’s latest trade and inflation reports later for further clues on the strength of the economy.

Japan 10-Year Yield Holds at 30-Year High

Palladium futures hovered near $1,400 per ounce, pausing losses after hitting seven-week lows as pressure across precious metals eased. Sentiment improved following signs of progress in US-Iran negotiations, which helped calm concerns over rising energy prices and the possibility of prolonged monetary tightening. Investors also tempered expectations of a more aggressive Federal Reserve stance, supporting a modest rebound in metals prices. Additional support came from bargain buying after Tuesday’s sharp decline, while lingering concerns over constrained supply from major producers, particularly South Africa and Russia, continued to underpin the market. Separately, JP Morgan recently projected palladium prices could reach $1,600 per ounce by the fourth quarter of 2026. Despite falling 11.19% over the past month, palladium remains 32.67% higher than a year ago.

Trending Symbols And Events

Most latest news, events and ideas for smart decisions

Latest News