It’s been an interesting day so far with Bank of Japan Governor Haruhiko Kuroda channeling Peter Pan, Australia’s trade deficit cratering the ASX, while markets in Hong Kong and Shanghai inexplicably drop.
Asian equity indices trade mixed. After soaring right after the opening bell, two of Asia’s biggest equity markets inexplicably dropped with the Nikkei barely managing to eke out a 0.3% gain. Hong Kong’s Hang Seng Index fell 1.6%, while the Shanghai Composite Index slid 1.8%. MarketWatch
Deteriorating data from down under. As shipping slows and coal mines shutter, Australia saw its trade deficit for April at $3 billion, a figure much, much higher than expected. Also, weak wage growth saw April retail sales post zero expansion from a month earlier. Port closures due to bad weather meanwhile contributed to a 6% slump in April exports. Bloomberg
Korean GDP posts 2.5% growth. South Korea might be the next country to ramp up monetary easing as first quarter GDP posts a modest 2.5% growth. Bloomberg (video)
Governor Kuroda channels Peter Pan. Talking to an audience of academics from around the world, Bank of Japan governor Haruhiko Kuroda explains his approach to central banking by channeling of all things, Peter Pan: “The moment you doubt whether you can fly, you cease forever to be able to do it.” An apt description given the Bank of Japan’s off-beat way of handling monetary policy. Bloomberg
Greece – EU talks end with… a date for more talks. Kicking the can further down the road has become harder and harder for Greece and its creditors as late-night talks between Greek prime minister Alexis Tsipras and senior EU officials ended with no sign of a deal. PM Tsipras however, was quick to point out that a deal was “in sight.” He, along with host European Commission president Jean-Claude Juncker and the rest of the group, would reconvene their meeting within the following days. Reuters
Photo credit: Pablo Fernandez via Flickr