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Hong Kong's Retail Sales Value Climbs 8.6% in April

Hong Kong logged an 8.6% annual growth in total retail sales value in April at HK$31.4 billion, compared with HK$34 billion in the previous month, provisional government data showed Tuesday.The Hong Kong Census and Statistics Department added that year-to-date sales from all retail outlets were up 11.3% on an annual basis.

Hang Seng

UK Consumer Credit Growth Falls in April; Mortgage Approvals Up

Net borrowing of consumer credit by individuals in the UK stood at 1.86 billion pounds sterling in April, following the revised 1.90 billion pounds in March, according to Bank of England data published Tuesday.The consensus estimate for the month was 1.7 billion pounds.Meanwhile, net mortgage approvals for house purchases came in at 65,945, compared with the revised 63,979 in the prior month and the expected 62,000.

FTSE 100

Swiss Watch Exports Down 16.6% in April

Switzerland's watch exports fell 16.6% year over year to 2.13 billion francs in April, due to a value decline across nearly all material categories, particularly precious metal watches and steel models, the Federation of the Swiss Watch Industry said Tuesday.Exports of wristwatches dropped 17.5%, while the other products category rose 5.6%.In the first four months of 2026, overseas shipments decreased 3.9%.

^SSMI

Spanish Unemployment Numbers Decrease in May

The number of individuals registered as unemployed in Spain fell by 36,323 in May, after a decrease of 62,668 in April, according to government data published Tuesday.Analysts expected a decrease of 56,800 in unemployment levels for the month.

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Ifo: German Manufacturers Face Escalating Supply Crunch Amid Geopolitical Tensions

German manufacturing companies reported a growing shortage of intermediate products, with production expected to be affected as an "alarmingly high" number of businesses grapple with the supply crunch, the ifo Institute said Tuesday.The percentage of manufacturers facing bottlenecks increased to 15.9% in May from 13.8% in April, led by industries with a high demand for oil- and energy-intensive intermediate products due to the impact of geopolitical tensions.In particular, 31.2% of chemical businesses reported a materials shortage, while the share of rubber and plastic products makers in the same situation rose to 23.7%. One in four electronics companies saw a supply shortage, while the portion of automotive companies facing supply issues was comparatively low at 10%. Consumer-related industries were largely unaffected.

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Australia's March Quarter GDP Expected to Book 2.6% Year-over-Year Increase, Growth to Weaken in June Quarter, BofA Securities Says

Australia's gross domestic product (GDP) for the March quarter is expected to rise by 0.5% sequentially and 2.6% on an annual basis, but growth is expected to weaken in the June quarter, BofA Securities said in a note on Monday.In comparison, the GDP increased by 0.8% quarter-over-quarter in the December 2025 quarter and by 2.6% year-over-year.The first-quarter data is too early to capture any material spillovers from the conflict in the Middle East, with negative growth effects more likely to emerge in the second quarter. The data center boom will drive a strong 3.8% quarter-over-quarter rise in private investment. However, this investment also contributed to a surge in imports, partly offsetting the growth impulse.The Reserve Bank of Australia is likely to focus on the strength of private demand before the conflict, alongside inflation risks stemming from weak productivity and rising unit labor costs.While household consumption is anticipated to be resilient in the first quarter, led by non-discretionary categories, it is expected to fall in the June quarter.

Australia's Economy Expected to Grow 0.5% in Q1; Wage Hike Has No Material Impact on Inflation Outlook, ANZ Says

Australia's gross domestic product is expected to grow 0.5% in the first quarter from the previous quarter and expand 2.6% from a year earlier, but the growth should decelerate over the remainder of 2026 as momentum has cooled following the Middle East conflict, ANZ said in a Tuesday report.The bank said the Australian Fair Work Commission's (FWC) 4.75% increase to modern award wages is the largest hike since 2023, but doesn't materially change the outlook for wages, inflation, or the key cash rate."Increases in award wages do not typically flow through fully to the wage price index, but if they did, we estimate this decision would make an around 0.5 percentage point contribution to annual WPI growth," the bank said.It expects the softer economic activity outlook and a rise in the jobless rate to help offset the impact of the FWC's decision with regard to the aggregate wages bill.

Indonesia's Trade Surplus Shrinks to $89 Million in April; Exports Jump 22%

Indonesia's trade surplus fell sharply to $89.1 million in April from $3.32 billion in the previous month, according to government data published Tuesday.The consensus estimate was for a $1.50 billion surplus, according to Investing.com.Exports jumped 22% to $25.30 billion, recovering from the 3.1% drop in March. Imports surged 22.5% to $25.21 billion, significantly faster than the 1.51% increase in March.

Market Chatter: India to Seek Relief from US for Tariffs that May Arise from Trade Investigations

India is likely to ask the US for relief from any tariffs resulting from the US trade investigations, according to a Bloomberg report on Tuesday, quoting unnamed officials.As per the report, the matter is likely to be raised when negotiators from India and the US trade team, led by chief negotiator Brendan Lynch, meet this week to finalize an interim trade deal.Earlier this year, the US Trade Representative launched investigations under Section 301 of the Trade Act into countries, including India, over issues such as forced labor and excess production capacity. These may attract penalty tariffs if found guilty.The report said India has denied the allegations and asked the US to end the investigations. It is seeking that the US works out the matter within the framework of ongoing bilateral trade negotiations and not through unilateral means.(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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RBA's Ian Harper Expresses Concerns Over Rise in Inflation Expectations

Reserve Bank of Australia (RBA) Board Member Ian Harper said on Tuesday that any possible risk of long-term inflation expectations becoming unanchored requires "strong action," according to his speech on Tuesday.Harper said that Australia was seeing renewed inflation pressures even before the oil shock caused by the Middle East conflict.The RBA increased the official cash rate by 25 basis points to 4.35% at its May meeting."Higher interest rates are expected to slow the economy and lower the risk that inflation becomes entrenched," said Harper.

South Korean Corporate Financing Up 13% in April

South Korea's corporate financing through debt and equity issuance rose by 13% to 22.616 trillion won from a month earlier, according to data released by the Financial Supervisory Service on Tuesday.Equity issues fell 6% from 440.2 billion won to 413.6 billion won, while debt issues grew 13.6% to 22.202 trillion won in April, from 19.543 trillion won in the previous month.During the period, there were four initial public offerings, and the IPO proceeds fell 25% month over month to 157.7 billion won.Public equity offerings, on the other hand, rose by over 11% to 255.9 billion won.The outstanding balance of commercial papers as of end of April was 246.888 trillion won, while short-term bonds stood at 93.295 trillion, the data showed.

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Correction: Indonesia's Annual Inflation Rate Rises to 3.08% in May

(Corrects the month in the headline to May)Indonesia's annual inflation rate increased to 3.08% in May from 2.42% in April, according to data from Statistics Indonesia published Tuesday.On a monthly basis, consumer inflation was up 0.28%, compared with 0.13% a month earlier.Meanwhile, the country's annual core component inflation rate was 2.59%, compared with the prior reading of 2.44%. Month over month, core consumer prices rose 0.22%, against the previous 0.23% increase.

Indonesia's Annual Inflation Rate Rises to 3.08% in April

Indonesia's annual inflation rate increased to 3.08% in May from 2.42% in April, according to data from Statistics Indonesia published Tuesday.On a monthly basis, consumer inflation was up 0.28%, compared with 0.13% a month earlier.Meanwhile, the country's annual core component inflation rate was 2.59%, compared with the prior reading of 2.44%. Month over month, core consumer prices rose 0.22%, against the previous 0.23% increase.

Correction: --Indonesia's Annual Inflation Rate Rises to 3.08% in May from 2.42% in April

Indonesia's Annual Inflation Rate Rises to 3.08% in May from 2.42% in June

Malaysia Manufacturing PMI Returns to Contraction in May, S&P Says

Malaysia's manufacturing sector deteriorated slightly in May, retreating from a four-year high in April, as lower demand weighed on new orders and output.The latest seasonally adjusted S&P Global Malaysia Manufacturing Purchasing Managers' Index (PMI) dipped into contraction territory at 49.9, down from an expansionary 51.6 in April.A reading above 50 denotes sector expansion, while a figure below 50 signifies contraction.The link between gross domestic product data and the PMI could indicate softer growth midway through the second quarter, S&P Global Market Intelligence economist Maryam Baluch said.The contraction also comes as 100 small furniture factories in Malaysia's Muar manufacturing hub closed in recent months, Thailand's The Nation reported Tuesday.The lower headline index in May signaled weakness in underlying demand, while firms that increased prices registered lower sales, leading to more subdued new orders, S&P said.Production across the country also weakened compared with the previous two months, S&P said."Sluggish demand conditions in Malaysia's manufacturing sector led to a moderation in operating conditions, as output and new orders eased following growth observed in April," Baluch said.Purchasing activity among manufacturers increased for the second straight month as firms looked to build buffer stocks amid uncertainty in raw material prices due to the war in the Middle East.Input costs grew due to higher raw material and fuel prices, S&P said.Firms were hesitant about passing on costs to consumers, but price increases were driven by increased cost pressures, according to S&P.While producers were more confident about output expansion over the next year, positive sentiment was still historically subdued, S&P said.

FTSE Bursa Malaysia KLCI

Australia's Current Account Deficit Widens in March Quarter

Australia's seasonally adjusted current account deficit widened to AU$27.12 billion in the March quarter from AU$23.04 billion in the previous quarter, data from the Australian Bureau of Statistics showed Tuesday.The current account balance declined for the fourth consecutive quarter, with the deficit projected to reach its highest level as a percentage of nominal gross domestic product (GDP) since June 2016, said Jonathon Khoo, the Bureau's head of international statistics.The balance on trade in goods and services shifted to a deficit of AU$2.44 billion in the March quarter, from a surplus of AU$1.07 billion in the previous quarter."Trade in goods and services fell into a deficit for the first time since December quarter 2017, with exports of mining commodities falling and imports of data center equipment and fuels rising," Khoo said.Exports of goods and services fell 1.2% in the March quarter, driven by a 1.2% decline in goods exports, while imports of goods and services rose 0.8%, led by a 1.5% increase in goods imports, per the report.Services exports declined by 1.3%, mainly due to a drop in education-related travel services as fewer international students enrolled.Non-monetary gold exports and imports increased by 23.7% and 12.9%, respectively, as gold prices continued to hit record highs, marking the tenth consecutive quarterly rise in both trade flows."Foreign-owned mining companies in Australia saw higher profits this quarter due to price rises in gold and profits paid back to foreign owners and shareholders," Khoo added.The net primary income deficit widened to AU$23.66 billion in the March quarter from AU$23.27 billion in the previous quarter, the report said.The financial account recorded a surplus of AU$18.9 billion, supported by net debt and equity inflows.The balance on goods and services is expected to detract 0.8 percentage points from the March quarter GDP growth, the report added.

Australian Companies' Gross Operating Profits Fall in March Quarter

Australia's seasonally adjusted company gross operating profits decreased 1.3% in the March quarter compared with the December 2025 quarter and rose 3.2% compared with the prior corresponding period, according to a Tuesday report by the Australian Bureau of Statistics.Seasonally adjusted wages and salaries advanced 1.2% in the quarter and 5.5% compared with March 2025.Meanwhile, inventories inched up 0.5% over the quarter on a seasonally adjusted, chain volume basis and edged down 0.3% compared with prior corresponding period.Sales of goods and services rose in 10 industries and fell in five, with construction and professional, scientific, and technical services leading the gains, while mining recorded the largest decline.Sales of goods and services in the manufacturing sector edged 0.3% higher over the quarter and grew 3.1% compared with 2025, while wholesale trade sales rose 0.5% for the quarter and 3% year on year.

Total Number of Dwelling Approvals in Australia Falls in April

Seasonally adjusted data revealed that the total number of dwellings approved in Australia fell 3.4% to 16,710 in April from 17,307 in the previous month, figures from the Australian Bureau of Statistics showed on Tuesday.Private sector housing approvals edged down 1% to 10,088 in April, while approvals for private sector dwellings excluding houses fell 3.6% to 6,403, according to the ABS data.Meanwhile, the value of total non-residential building approvals rose over 29.4% to AU$7.75 billion, and the value of total residential building approvals fell 0.3% to AU$10.89 billion.