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Nikkei 225 closes higher by 0.70% at 21,419.23

Japanese stocks get a boost from more stimulus talk

Nikkei 27-05
The government is reportedly going to be pouring another ¥100 trillion at least in a new round of stimulus package, and that is helping to give the Nikkei a bit of a lift today.
The mood elsewhere in the region is more mixed with the Hang Seng down by 1.0% and the Shanghai Composite down by 0.2%, with the former dragged lower amid the clash between protesters and the police in Hong Kong.
US futures are keeping higher by about 0.6% though, but after the setback yesterday, major currencies are keeping on their toes in response to start European trading.
The dollar is a little firmer across the board, but nothing too overwhelming for now. AUD/USD is down 0.2% to 0.6640 while EUR/USD is also lower by 0.2% to 1.0960.

South Korea sees fresh spike in coronavirus cases amid outbreak in e-commerce warehouse

South Korea reported 40 new cases in the past day, the highest total in 49 days

Korea

This comes after e-commerce firm, Coupang, reported an outbreak at its logistics center located in Buncheon with at least 36 cases linked to the fresh cluster at the moment.

The firm did already say that it has moved to test 3,600 people at its facility after the reported incident. Once again, tracking and tracing is going to be the utmost importance here.
The fear is that it could lead to a widespread community transmission that may result in secondary wave of infections in the country.
If you need reminding, South Korea also had an incident at the start of the month where one infected person who visited nightclubs led to a resurgence in the number of virus cases. As of yesterday, the nightclub-linked cases has increased to 257 persons.

IEA: The coronavirus crisis is causing the biggest fall in global energy investment in history

IEA says global energy investment is to plunge by 20% in 2020

In money terms, that is equivalent to roughly $400 billion. Prior to the crisis, IEA had estimated global energy investment to grow by 2% this year. The agency also notes that governments and the overall industry is set to lose well over $1 trillion in revenue as a result.

Oil

Trump warned of sanctions on China, but no further info until the end of the week

An in brief background to this ICYMI:
  • China’s parliament is expected to pass a new security law givng central authorities more control over HK
  • teison in Hong Kong remain elevated, weekend protests
  • China reassured judiciary independence will remain
  • In other recent US-China development:
  • The US blacklisted dozens of Chinese firms
  • China has accused the US of stirring new cold war starins
  • China warned the US on Taiwan also

NZD “remains at the mercy of global risk sentiment near term”

An updated NZD view from Westpac, they nail it with that headline comments.

  • Remains at the mercy of global risk sentiment near term
  • potential for gains to 0.6400 during the next few weeks
  • Further out, though, economic data releases over the next few months will be dire, potentially denting sentiment further. There’s potential to revisit 0.5900 during the next few months.

An Oil ICYMI – Russia, oil majors discuss extending the crude output cut further

Overnight oil news with a report that Russia’s Energy Minister Alexander Novak met with domestic major oil companies on Tuesday

  • Discussions centred on implementing oil production curbs
  • possible extension of the current level of cuts beyond June
Reuters reported the info citing unnamed sources, said no final decision was reached.
Kommersant daily, citing three sources in oil industry, said Russia may keep the current level of cuts until September
I posted a couple of days ago on measures in Russia to try to ease the impact of cuts:
  • Russian President Putin has ordered bail out measures for Russia’s oil industry
Russian energy head honcho Novak:
 Russia Energy Minister Alexander Novak