Asia markets mixed ahead of US vote on debt ceiling agreement; Hong Kong braced for new lows

Shares of Softbank Group fell nearly 4% on Tuesday, dragging losses on Japan’s Topix index.

This comes after Arm, the chip designer owned by Softbank, announced its launch of a new technology for mobile devices and Taiwanese smartphone chip maker MediaTek. Say it You will use it for your next generation product.

SoftBank shares rose 8.8 percent on Monday.

Markets have rebounded this year despite the economic uncertainty in the US.

Some parts of the markets are very expensive right now, but analysts say some segments are still cheap.

They name four stocks that are still cheap to buy, including one in technology.

CNBC Pro subscribers can read more here.

– Wizen tan

Nvidia’s huge dividend has investors excited.

In a May 25th note, BofA said Nvidia’s “rosy view” when it comes to data centers and AI reaffirmed its positive view of the AI ​​server hardware supply chain.

It named three global stocks to play the role of Nvidia and AI.

CNBC Pro subscribers can read more here.

– Wizen tan

President Joe Biden and congressional leaders reached a tentative agreement over the weekend to avoid a US default, with the bill put to a vote as soon as this week.

House Majority Speaker Kevin McCarthy and Biden have been at odds for weeks over raising the debt ceiling, with the first signs of real progress emerging last week. Key provisions that necessitated a compromise included keeping non-defense spending flat for the next two years as well as increasing business requirements for food stamp benefits.

However, the bill would need the support of both Republicans and Democrats to bring it to President Biden’s desk before the so-called “X date” of June 5, the earliest the Treasury Department has indicated the United States might default.

– Brian Evans

China’s May PMI readings along with the Bank of Thailand meeting, inflation reports and South Korea’s GDP will be in focus this week.

On Monday, Hong Kong trade data for April will be published after the territory saw a 0.6% contraction in imports and a 1.5% contraction in exports in March.

Japan’s unemployment rate for April as well as Australian building approvals for the same month will be released on Tuesday. The Thai industrial production for the month of April will also be announced.

China’s National Bureau of Statistics will publish the Economic PMI for May. Economists polled by Reuters expect the reading to remain below the 50 mark that separates contraction from growth at 49.4, after April’s reading of 49.2.

The Bank of Thailand is scheduled to announce its interest rate decision on the same day.

South Korea’s April industrial production on Wednesday is expected to show a further decline of 7.9% in April, according to economists polled by Reuters.

Retail sales for South Korea and Japan are also scheduled to be released on the same day. India will release its GDP for the third quarter of the year. South Korea will also publish its latest trade figures along with Australian retail sales.

Indonesian markets will be closed on Thursday and Friday, while Singapore will have a market holiday on June 2. South Korea’s GDP and latest inflation readings will be released on Friday.

– Jihe Lee