Asia markets extend gains as investors assess business activity figures from around the region – CNBC

Singapore’s headline inflation rate fell to its lowest since September 2021, coming in at 2.7% for March.

This was lower than the 3.4% rate in February and also below the 3% expected by economists polled by Reuters.

The city-state’s core inflation rate — also known as the “MAS core inflation measure” — which strips out prices of accommodation and private transport, also fell to 3.1%, down from 3.6% in February.

— Lim Hui Jie

India’s business activity climbed at its fastest pace in 14 years, with the flash composite purchasing managers index for April coming in at 62.2, up from 61.8 in March and higher than the 61.4 expected by economists polled by Reuters.

According to HSBC, the manufacturing and services sectors also recorded-faster-than expected expansions, with the PMI standing at 59.1 and 61.7, respectively.

This compares to Reuters’ PMI expectations of 58.8 for manufacturing and 60.5 for services.

Pranjul Bhandari, chief India economist at HSBC, attributed the outperformance to a “strong performance in both the manufacturing and service sectors, led by increased new orders.” HSBC added that growth in India remained “broad-based” across the manufacturing and service sectors.

— Lim Hui Jie

Shares of Chinese bubble tea chain Chabaidao, officially listed as Sichuan Baicha Baidao Industrial, opened 10% lower in early trade on its trading debut in Hong Kong, before plunging more than 30%.

It is currently trading at HK$12.32, far below its IPO offer price of HK$17.50.

The IPO is Hong Kong’s largest listing so far this year. The company announced it had garnered net proceeds of 2.59 billion Hong Kong dollars ($330.5 million) from its IPO, before listing expenses.

Chabaidao offered 90% of its 147.7 million shares in a global offering, while the remainder 10% were offered in a public offer in Hong Kong.

However, the public offer was only 0.5 times subscribed, leading the firm to reallocate the remainder of the shares to the global offer, which was 1.11 times subscribed.

— Lim Hui Jie

Japan’s business activity in April expanded at its fastest pace in eight months, according to flash figures from au Jibun bank.

The country’s composite purchasing managers index climbed to 52.6 from March’s 51.7, its joint-highest level since August.

Japan’s manufacturing PMI came in at 49.9, marking a softer decline from the 48.2 in March, while services PMI was at 54.6, up from 54.1 in March.

— Lim Hui Jie

The Japanese yen weakened to a fresh 34-year low against the U.S. dollar early Tuesday, hitting 154.85 against the greenback.

This is the weakest the currency has been since the mid-1990s, although it has strengthened marginally to 154.74 as of 9:18 a.m. Tokyo time.

The currency will be watched by the Bank of Japan as it meets Friday, although the central bank has not announced a level where it will intervene.

Australia’s business activity in April expanded at its fastest clip in 24 months, according to flash figures from S&P Global.

The country’s composite purchasing managers index came in at 53.6, compared to 53.3 in March.

Manufacturing PMI climbed to 49.9 from 47.3, just shy of the 50 mark that separates expansion from contraction, while services PMI slipped slightly to 54.2 from 54.4.

— Lim Hui Jie

Heightened geopolitical tensions have triggered volatility in crude oil prices, but one strategist is looking keenly for opportunities in the energy sector.

It was among the laggards last year, but things have turned around with many stocks now trading near all-time highs.

Stephen Ellis, energy and utilities strategist at Morningstar, said oil market volatility does present challenges and urged investors to be patient, which “regularly pays off within energy.”

However, he did say there were “selective bargains” in the market currently and revealed five stocks in the energy space he likes right now.

CNBC Pro subscribers can read more here.

— Amala Balakrishner

The U.S. flag is displayed at Tesoro’s Los Angeles oil refinery.

Lucy Nicholson | Reuters

Crude oil futures edged lower on Monday after Iran said it would not escalate the conflict with Israel.

The West Texas Intermediate contract for May fell 29 cents to settle at $82.85 a barrel, while June Brent futures fell 29 cents to settle at $87 a barrel. U.S. crude oil and the Brent fell 3% last week. The two benchmarks are up nearly 16% and 13% this year, respectively.

Iranian Foreign Minister Hossein Amirabdollahian told NBC News the country does not plan to respond to Israel’s retaliatory strike launched Friday.

— Spencer Kimball

U.S. savings bonds.

Jetcityimage | Istock | Getty Images

Investors should dial back their exposure to U.S. bonds as Fed rate cuts increasingly appear to be pushed into the future, according to Ned Davis Research.

Joseph Kalish, the fund’s chief global macro strategist, said in a note to clients that NDR was reducing its exposure to U.S. bonds in its global fixed income allocation model to a market weight position from an overweight position.

“A flight to safety trade last week temporarily helped U.S. bonds outperform. But fundamentals and technicals continue to work against U.S. debt relative to other economies. The U.S. economy remains firm, inflation is sticky, and the Fed keeps pushing back when it will cut rates,” the note said.

Investors should replace that exposure with incremental additions to European and Japanese bonds, according to Ned Davis Research.

— Jesse Pound

Gold futures.

Bullion hit a low of $2,344.70 per ounce earlier on Monday, its lowest level since April 15. The VanEck Gold Miners ETF (GDX) is also on track for its worst day since Feb. 13.

— Brian Evans, Nick Wells