Australia CPI, China PMI, India GDP

“While we still have a big challenge to anchor the inflation expectations to 2%, the end of our battle [against deflation] is in sight,” Bank of Japan deputy governor Shinichi Uchida said at a conference co-hosted by the BOJ.

Uchida said that labor market conditions had changed “structurally and irreversibly,” which was the original cause of deflation after Japan’s asset price bubble burst. Companies had hoarded labor so as to maintain economic and social stability, but this led to wage markdowns and, in turn, marginal price markups.

“We returned to a conventional monetary policy framework, aiming at a 2% price stability target through adjustments of the short-term policy rate, which means we have overcome the [0%] lower bound,” Uchida said.

— Lim Hui Jie

Kaisa Group’s Hong Kong-listed shares jumped 4% after a Hong Kong court reportedly adjourned a hearing for a petition seeking the liquidation of the firm until June 24.

The hearing is for the non-payment of 2023 notes with an outstanding principal of $750 million, with Citicorp International, the trustee of a major group of bondholders, acting as petitioner since March after a former petitioner withdrew, according to Reuters.

The debt-laden Chinese property developer has been working on an offshore debt restructuring for over two years against the backdrop of a deepening debt crisis in China’s real estate sector.

The Hang Seng index rose 0.45% on the day.

— Shreyashi Sanyal, Reuters

China welcomes South Korean firms like Samsung to expand investment in the country, Chinese Premier Li Qiang told Samsung Electronics Executive Chairman Lee Jae-yong.

China will “always be open to foreign companies” as they are “an indispensable force” for China’s development, Li said. Many foreign firms have faced geopolitical uncertainty in the Chinese market as trade tensions between the U.S. and China escalate.

Li said Samsung’s partnership and investment will be “mutually beneficial” and a “win-win” for South Korea and China, pledging that Beijing will provide a better business environment to boost foreign investment.

Li was speaking to the Samsung chief on Sunday on the sidelines of the China–Japan–South Korea trilateral summit which ends on Monday.

— Sheila Chiang

China’s industrial profits between January and April period rose 4.3% year on year to 2.09 trillion yuan ($288.6 billion), official data showed Monday.

This is unchanged from the 4.3% rise recorded in the first three months of this year.

Industrial profit numbers include firms that have an annual revenue of at least 20 million yuan. China releases its industrial profits on a year-to-date rolling basis.

— Lim Hui Jie

Bank of Japan Governor Kazuo Ueda said that the central bank will “proceed cautiously with inflation-targeting frameworks,” Reuters reported Monday.

Speaking at a BOJ-hosted seminar on central banking, Ueda said to estimate the neutral interest rate in Japan was challenging, as the country has had near zero short term interest rates foe 30 years.

“The absence of significant interest rate movements poses a considerable obstacle in assessing the economy’s response to changes in interest rates,” he said.

— Lim Hui Jie, Reuters

Japan resumed its push to combat volatility in the yen at the Group of Seven (G7) meeting during the weekend as bond yields’ spike to a 12-year high did little to prop up the currency, according to Reuters.

The G7 finance ministers at a meeting in Italy reaffirmed their commitment to cautioning against excess volatility in foreign exchange rates, after lobbying by Japan, Reuters reported.

The Japanese yen had weakened to levels not seen in 34 years against the U.S. dollar in late April, only to rebound after suspected intervention by Japanese authorities.

The Bank of Japan has also taken steps this year toward monetary policy normalization after years of negative interest rates, including a March hike to between 0% and 0.1% from -0.1%.

— Reuters, Shreyashi Sanyal

As the price of gold hits an all-time high and silver rallies to a multi-year high, Bank of America has identified four exchange-traded funds (ETFs) that offer attractive exposure to precious metals.

These funds reflect baskets of physical precious metals, with varying allocations to silver, gold, palladium, and platinum.

The bank’s research also suggests that a portfolio with 40% exposure to broad commodities would have outperformed a portfolio with 40% United States Treasury bonds by 0.8% per year since 1945.

CNBC Pro subscribers can read more here.

— Ganesh Rao

Investor darling Nvidia continued its artificial intelligence-fueled boom, with its earnings beating expectations last week.

“The biggest question that remains is how long this runway is,” said Lucas Keh, analyst at research firm Third Bridge.

Wall Street is still mostly bullish on Nvidia. But investors who are worried about being overexposed to Nvidia or who want to make their portfolios more balanced could consider replacing their Nvidia allocation or complementing it with other growth stocks with a low correlation to the chipmaker.

CNBC Pro subscribers can read more here.

— Weizhen Tan

Chipmaker Nvidia has rallied 15% week-to-date. The stock has surged following its better than expected quarter earnings report on Wednesday, which indicated ongoing strong demand for its artificial intelligence chips.

Shares topped $1,000 for the first time this week on the earnings.

Even as big tech names power the market higher and dominate headlines, there are signs of broadening, according to Ross Mayfield, investment strategy analyst at Baird.

“While there was some angst last year over heavy concentration in Big Tech stocks, the market has broadened out significantly in recent months,” Mayfield said.

He noted that “While concentrated markets have not historically led to bad returns, it is usually a sign of a healthier economy when breadth — the number of individual stocks and sectors that are doing well — is better (more legs supporting the stool, so to speak).”

— Hakyung Kim

The U.S. Securities and Exchange Commission approved a change that opens the door for exchange-traded funds that can own cryptocurrency ether. The change comes less than six months after the SEC greenlit bitcoin ETFs. Ether prices initially rose on the news, but were last down 2% at $3,702.11.