Fed inflation, Japan PMI, Singapore GDP, BOK decision

Singapore‘s headline inflation rate for April came in at 2.7%, unchanged from March, marking a 32-month low.

Healthcare, recreation and culture were among segments that saw the largest year-on-year increase in prices.

The so-called “MAS core inflation measure,” which strips out prices of private transport and accommodation, also held steady at 3.1% from March.

This measure is also considered by the Monetary Authority of Singapore when it formulates the country’s monetary policy

— Lim Hui Jie

South Korea’s central bank held its benchmark policy rate at 3.5% as expected by a Reuters poll.

It was the 11th consecutive meeting at which the Bank of Korea held interest rates steady. BOK said it expects the economy to grow 2.5% this year, higher than its prior forecast of 2.1%. 

It expects the speed of IT economic expansion, consumption recovery, and monetary policies of major countries to influence the South Korea’s growth.  

BOK expects this year’s consumer price inflation to be at 2.6%, and core price inflation at 2.2%, same as the levels it estimated in February.  

The central bank is expected to cut rates by 50 basis points in the fourth quarter, according to a Reuters poll.

— Shreyashi Sanyal

Shares of Singapore’s national carrier Singapore Airlines fell as much as 1.3% on Thursday, its largest drop in more than a month.

This comes after SIA flight SQ321 encountered extreme turbulence on Tuesday, resulting in one fatality and the flight making an emergency landing in Bangkok, Thailand. Singapore’s markets were closed on Wednesday.

The fatality was a 73-year-old British man, who died due to a suspected heart attack.

As of Wednesday, 58 people are still in hospital, according to local media CNA, including 20 in intensive care.

— Lim Hui Jie

Japan’s manufacturing activity expanded for the first time in a year, while services continued to grow in May, according to a private survey.

The headline au Jibun Bank flash Japan manufacturing purchasing managers’ index rose to 50.5 in May from 49.6 in April. A PMI reading above 50 signifies growth.

The flash services PMI grew 53.6 in May, down from a final reading of 54.3 in April.

Business activity expanded at its fastest pace in nine months at 52.4 in May compared with April’s 52. 3.

“The expansion in business activity remained services-led, but the near-stabilization of manufacturing output offers hope of growth broadening out later in the year,” the survey read.

— Shreyashi Sanyal

Australia’s business activity in May grew at its slowest rate in three months, with the composite purchasing managers index sliding to 52.6 from 53.0, according to flash estimates from Judo Bank.

Australia’s manufacturing PMI held steady at 49.6, registering a joint nine-month high, while the services PMI fell to 53.1 from 53.6.

A PMI reading above 50 indicates expansion in activity, while a reading below that level points to a contraction.

Warren Hogan, chief economic advisor at Judo Bank said the PMI figures were “indicative of ongoing business activity and output growth across the Australian economy,” in contrast to weak consumer sentiment and spending indicators.

— Lim Hui Jie

A diversified listed private equity investment company could see its share price rise by more than 40%, according to analysts at investment banks Peel Hunt and Jefferies.

The close-ended fund has investments in high-profile private companies such as SHEIN, Figma, Databricks, Discord, and ByteDance, the owner of TikTok, among others.

It has assets worth nearly $4bn invested in over 1,000 companies.

CNBC Pro subscribers can read more here.

— Ganesh Rao

The hawkish tone of the minutes from the Federal Reserve’s latest meeting indicates “higher for longer is the official mantra,” said Chris Zaccarelli, chief investment officer for Independent Advisor Alliance.

“Given that rate cuts are off the table, bears would normally get excited, but because Chair Powell officially took rate hikes off the table, the market is going to fluctuate based on other factors,” Zaccarelli said.

He added that Nvidia’s earnings after the bell will dictate which direction the market moves in the coming days.

— Hakyung Kim

Family offices have increased their investments to developed market fixed income by the largest amount seen in five years, according to a new study by UBS.

This was among one of the major shifts seen in this survey of 320 global single family offices across seven regions — the largest family office study UBS has carried out to date.

Here’s how family offices are investing this year and how they plan to change their allocations in the next five years.

CNBC Pro subscribers can read more here.

— Weizhen Tan

The minutes from the Federal Reserve’s most recent meeting showed the central bank remains concerned about U.S. inflation.

“Participants observed that while inflation had eased over the past year, in recent months there had been a lack of further progress toward the Committee’s 2 percent objective,” the summary stated. “The recent monthly data had showed significant increases in components of both goods and services price inflation.”

“Various participants mentioned a willingness to tighten policy further should risks to inflation materialize in a way that such an action became appropriate,” the minutes added.

— Fred Imbert