Investors were expected to focus on Caixin manufacturing PMI for the month of June, which was due at 9:45 a.m. Official manufacturing PMI released on Friday came in at 51.7, higher than the 51.0 forecast by Reuters, marking a faster-than-expected expansion.
Markets will also be eyeing a “bond connect” program allowing Hong Kong investors to trade in China’s fixed income market. A press release on the Hong Kong Monetary Authority (HKMA) website stated that trial operations of “northbound” trade will begin on Monday.
Meanwhile, the Bank of Japan’s quarterly tankan survey reflected that business confidence had improved. The big manufacturers’ index registered a score of +17, compared with the forecast of +15.
Central bank speakers could continue to impact on markets this week after comments from various officials at the European Central Bank, Bank of Canada and Bank of England resulted in currency moves last week, said National Australia Bank Head of FX Strategy Ray Attrill in a Monday morning note.
The Reserve Bank of Australia is expected to announce its decision on interest rates on Tuesday. Several ECB officials and the president of the Deutsche Bundesbank were due to speak over the course of this week.
“We very much doubt the euro will be ending this week where it started,” Attrill said.
In corporate news, private equity firm TPG Capital has reportedly dropped its bid to take over Australia’s Fairfax Media, Reuters said. Rival private equity firm Hellman & Friedman has also ended talks with the media company, Reuters said. Fairfax counts The Sydney Morning Herald newspaper and an online property classifieds portal as part of its portfolio of businesses.
In currency news, the dollar index, which measures the greenback against a basket of currencies, edged higher to trade at 95.654 at 8:00 a.m. HK/SIN, compared with levels around the 95.63 handle seen in the last session. Against the yen, the dollar continued to trade above the 112 handle, with the greenback fetching 112.23 yen.
The Australian dollar traded at $0.7688. The Aussie dollar, which is sensitive to Chinese economic data, had climbed following the beat in China official manufacturing PMI on Friday.
In energy news, oil prices rose following data on Friday that reflected a decrease in U.S. rigs and positive data out of China. Brent crude futures rose 0.29 percent at $48.91 a barrel and U.S. crude futures gained 0.52 percent to trade at $46.28.
Also on the economic calendar for Monday were Australia May building permits, which were due at 9:30 a.m. HK/SIN.
Stocks closed mostly higher in the U.S. on Friday, with the Dow Jones industrial average adding 0.29 percent, or 62.6 points, to close at 21,349.63. Markets in the U.S. will close early on Monday for the eve of Independence Day.